Highlights of Motor Vehicles Amendment Rules, 2022

Enterclimate

22 Sep, 2022

The Motor Vehicles Rules 2021 were amended in September 2022to to bring into force some fundamental changes deemed essential concerning the practical and legal scrapping of old vehicles in India. The new rules were termed Motor Vehicles Amendment Rules, 2022. The previous, which came into effect on 25th September 2021 in India, aimed to reduce the number of old and defective vehicles, reduce vehicular air pollutants and fulfil India’s climate commitments while improving road and vehicular safety. The rules also contained guidelines for environmentally sound management of end-of-life vehicles (ELVs) and Automotive Industry Standard (AIS) 129.

Some crucial benefits were aimed to be achieved through these rules. It includes better fuel efficiency by discarding old vehicles and formalising the currently informal vehicle scrapping industry. The availability of low-cost raw materials for electronics, automotive, and steel industries is also a possible benefit of the policy. These rules apply to all vehicle categories along with their last owners, automotive dismantling, scrapping and recycling facilities, automobile collection centres and recyclers of all types of automotive waste products and the recent amendments.

Changes brought under the Motor Vehicles Amendment Rules.

Sub-rule (2) in the previous rules stated that the IT systems of RVSF must have necessary cyber security means for safe access to the VAHAN database. This rule has now been omitted in the new Motor Vehicles Amendment Rules, 2022.

Sub-rule (3) of Rule 4 allowed the registered vehicle scrapping facility the connectivity to verify records of vehicles produced for scrapping with the database of stolen vehicles of NCRB as well as with the local police. The term “as well as with the local police” In the latest amendment has been omitted.

In sub-rule 1 of Rule 6 that provided the registration procedure for Registered Vehicle Scrapping Facility (RVSF), clause (ii) provided for 90 days in addition to the time for a security deposit; the term “plus 90 days” has been omitted.

After the amendment, sub-rule 5 of rule 7 reads as “The registration issued under this rule and Rule 6 shall not be transferable” instead of “The registration issued under this rule shall not be transferable”. In the same rule, in sub-rule b, the following clauses have been added-

• The registered owner has to apply digitally on VAHAN in Form-2 to the RVSF or the designated collection centre for depositing and scrapping the vehicle.
• As per Motor Vehicles Amendment Rules, 2022, the RVSF and the designated collection centre also act as facilitation centres to support citizens with the digital application of Form-2.
• The documents mentioned below must be uploaded along with Form-2 by the registered owner for verification by the Registered Vehicle Scrapping Facility^[1] (RVSF):—

• Address and identity proof of the owner such as passport, voter card, Aadhaarcard, driving license or other relevant identity card issued by the state or the central government;
• Authorisation letter on stamp paper for the authorised representative as per para 5 of Form-2, if the vehicle is not handed over by the owner;
• Identity and address proof of the authorised representative (if applicable) such as passport, voter card, driving license, Aadhaar card, or other relevant identity card issued by the state or the central government;
• The owner or his authorised representative must submit the vehicle with the original registration certificate and sign a digital undertaking as per Form-2Ato the RVSF.
• The RVSF must also sign a digital undertaking as per Form-2B.
• Vehicles impounded by an enforcement agency must be handed over to the RVSF if they meet the criteria for vehicle scrapping as provided under rule 8.
• Motor Vehicles Amendment Rules, 2022 also state that the RVSF must verify the records of the vehicles produced for scrapping at the VAHAN portal. RVSF must include verifying the database of the stolen vehicles held by NCRB.
• The RVSF must digitally remit or pay by an account payee cheque the agreed consideration for the vehicle and obtain a receipt from the owner or his authorised representative for the record.
• The Registered Vehicle Scrapping Facility must deface or punch the registration certificate in the presence of the owner or his authorised representative. The RVSF must then issue a digitally signed Certificate of Deposit at VAHAN, as per Form-2C, as evidence of acceptance of the vehicle for scrapping.
• The RVSF established in a state can accept and scrap the vehicles registered in any state or UTs under the jurisdiction of any Registration Authority.
• The whole process will be seamlessly linked with VAHAN on an all-India basis, irrespective of the location of any vehicle registering authority.
• The Certificate of Deposit is necessary and sufficient documentation for the owner to avail incentives and benefits for the purchase of a new vehicle as may be declared from time to time, and the validity of the said certificate must be two years from the date of issue.
• Motor Vehicles Amendment Rules, 2022 stipulates that the Certificate of Deposit will be electronically tradeable.
• The transfer Certificate of Deposit will be generated on the trading platform for new owners as per Form- 2D. The Certificate of Deposited is marked ―Cancelled in the VAHAN database by the RTO  or dealer providing the benefits to the owner of the certificate.
• The regional transport office or dealer registering the new vehicle purchased against the Certificate of Deposit shall digitally verify and authenticate the certificate.
• The RVSF must facilitate the physical transmission of the original certificate of registration (defaced or punched) along with the Certificate of Vehicle Scrapping to the road transport or RTO in the state where the vehicle has been registered to get the vehicle registration cancelled.
• The RVSF must have the cut piece of the chassis number in safe custody for six months from the issue of the Certificate of Vehicle Scrapping, issued under rule 11.
• As per the Motor Vehicles Amendment Rules, 2022, the RVSF shall maintain digitally scanned copies of all documents for ten years for record and examination during the inspection.
• The Registered Vehicle Scrapping Facility shall ensure that removal, recycling, or disposal of hazardous parts of the scrapped vehicle is done as per the guidelines issued by the CPCB for environmentally sound management of End-of-Life vehicles and AIS-129.
• Vehicles must not be scrapped until the fuel, oil, antifreeze, and other gases and fluids are drained and collected in standard containers.
• A digital register of vehicles scrapped must be maintained in Form-3.

In Rule 11, sub-rule (1) now says that the RVSF, after completing the necessary treatment, will issue a Digital Certificate of Vehicle Scrapping. This will be including a digital photograph of the cut-out of the chassis in Form-4 to update at the VAHAN Database (earlier, the rules directed to update at the national register, too) and inform the competent authority in the state government or Union territory Administration for updating of records of the vehicle.

Other changes were also introduced in the Motor Vehicles Amendment Rules, 2022. In Rule 13, sub-rule 8, clause (b), the words ― shredding, shearing, and bailing has been omitted. In the same rule, sub-rule 12 now says that any individual may establish any collection centre other than the scrapping yard. If the collection centre undertakes activities such as de-pollution and dismantling, then the requirements applicable for an RVSF will also apply to the collection centre.

In rule 14 sub-rule (4), after the words – Registered Scrapper, the terms “and the operator of the such facility” shall bear the cost of said audit and assessment” have been added. This has been done because the earlier rules did not clarify who would bear the cost of the said audit.

How to register a Vehicle Scrapping facility

A specific procedure for registering the facility is defined under Motor Vehicles Amendment Rules, 2022. To do so, submit a duly filled application under Form-1 to the Registration Authority of the concerned State Government or UT government where the RVSF will be established. A non-refundable processing fee also needs to be submitted.

The key documents and certificates required for Vehicle Scrapping Facility Authorisation are –

• Duly filled Form I
• Certificate of Incorporation or Shop Act Registration or UdyamAadhaar
• GST registration
• Valid PAN
• Consent to Establish NOC (or proof of application)
• Evidence of technical requirements for collection and dismantling centres as per CPCB guidelines
• Proof of machinery required for depollution
• Consent to Operate from the concerned SPCB (or an undertaking to obtain CTO within six months)
• Undertaking to obtain the required quality Certification of ISO 9001, ISO 14001 or ISO 45001 within 12 months
• Proof of occupation of premises like ownership deed/agreement or proof of lease (for three years)
• Approved layout plan

Conclusion

As per MoRTH, some anomalies in the existing regulations were causing harassment in business establishments. Most of the changes introduced through Motor Vehicles Amendment Rules, 2022  are crucial to strengthening security measures, removing unnecessary checks and making the vehicle scrapping facility business a lucrative option. While the 2022 rule addresses the ill effects of old vehicles on the environment, it also aims to make scrapping old vehicles easy for the general public. According to some experts, older vehicles pollute the atmosphere 10 to 12 times more than those deemed fit. The old vehicles additionally pose a risk to road safety. The Vehicle Scrapping Policy aims to bring many safety parameters in motion by gradually phasing out unfit vehicles from the roads. The amendments to the rules are a big step in this regard.