Show-cause notice to nine registered units over ‘non-payment, underpayment’ of scrap value of impounded vehicles

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The vehicle owners have also accused the RVSFs of not issuing Certificate of Deposit (COD) despite repeated communications.Following multiple complaints from vehicle owners, the transport department has issued show cause notices to at least nine Registered Vehicle Scrapping Facility (RVSF) in the Capital. The complaints range from non-payment or underpayment of scrap value for impounded vehicles to scrap value paid not being in accordance with government guidelines, said officials. Besides, the complaints stated that scrap value of unclaimed vehicles that were impounded had not been paid to the government, they added.These scrapping units were authorised by the transport department during the drive against “end of life” vehicles (ELVs) or overage vehicles launched in October last year. The engagement of these units with the department has been put on hold for the time being, said officials.Sources said that following the complaints, the Anti-Corruption Branch (ACB) has issued notice to all zones of Municipal Corporation of Delhi (MCD) engaged in the drive besides the transport department.A senior transport department official said, “The department has been receiving several complaints and grievances on a daily basis regarding non-payment or underpayment of scrap value for impounded vehicles…The complaints allege that the scrap value paid is not in accordance with the official memorandum issued by the Ministry of Steel for (such) vehicles…”The vehicle owners have also accused the RVSFs of not issuing Certificate of Deposit (COD) despite repeated communications, said officials.“Despite repeated reminders, they did not submit the amounts/scrap value of the unclaimed vehicles to the government’s treasury… As per the guidelines for handling ELVs, the RVSFs should submit the scrap value to the government within 15 days without deducting any charge…,” said a senior official from the transport department.Officials said these RVSFs have continuously violated the ELV guidelines and have not submitted data regarding COD and transaction details to the department to date.Story continues below this adCOD is issued to the owners of ELVs for getting their vehicles scrapped from a registered scrapyard. Last year, the government approved a tax rebate scheme, under which the owners get a discount on purchasing new vehicles after getting their old petrol and diesel vehicles, which have completed 15 years and 10 years, respectively, scrapped from government-authorised units.While the concession amount is 20% for new non-transport petrol/CNG/LPG vehicles and 15% for diesel vehicles, for transport vehicles, it is 15% for petrol/CNG/LPG and 10% for diesel.The tax concessions, though, cannot exceed 50% of the scrap value. The valid period of this certificate, which is electronically tradable, is three years. However, no concessions will be available for government-owned or impounded vehicles.Last year, in a drive launched before Diwali to curb vehicular pollution, the department engaged around 17 RVSFs on a voluntary basis. Delhi Traffic Police and the civic body also participated in the drive.Story continues below this adBetween October 2024 and February 2025, a total 28,049 ELVs were impounded and handed over to different RVSFs.Notably, petrol vehicles over the age of 15 and diesel vehicles over the age of 10 years have not been allowed to run in the city for the past several years. The department had started de-registering such overaged vehicles in Delhi from January 2022, following directions from the Supreme Court and the National Green Tribunal (NGT).These vehicles can be sold in other states after procuring No-Objection Certificates.Stay updated with the latest - Click here to follow us on Instagram© The Indian Express Pvt LtdTags:Delhi Police