Delhi to probe irregularities at vehicle scrapping centres

New Delhi: Amid rising complaints from vehicle owners, the Delhi government is preparing to initiate an inquiry into registered vehicle scrapping facilities (RVSFs) allegedly engaged in malpractice and mismanagement in handling end-of-life vehicles (ELVs).

Environment Minister Manjinder Singh Sirsa confirmed that a probe will be ordered soon to investigate how some RVSFs, authorised by the government to impound and scrap overaged vehicles, may have violated protocols and exploited vehicle owners.

According to senior officials, the Transport Department, Delhi Traffic Police, and Municipal Corporation of Delhi (MCD) will be asked to submit detailed reports on the conduct of these facilities. The investigation aims to uncover whether scrappers have failed to comply with existing norms on towing, scrapping, and providing compensation to owners. Owners of scrapped vehicles have raised serious concerns. Many allege they were overcharged for towing and handling, while others claim they did not receive the promised scrap value or were forced to wait for prolonged periods despite obtaining department clearance for release. Some said they received reduced payments after unauthorized deductions, in violation of scrapping guidelines.

Officials also flagged irregularities in issuing Certificates of Deposit (COD), which are critical for securing tax concessions on new vehicle purchases. “There are reports that some RVSFs are trading CODs without the vehicle owner’s knowledge or consent,” said an official. “In several cases, the CODs were either delayed or fabricated, and some scrapped vehicles were never actually dismantled but sold illegally in other states.”

Under the scrappage policy, discounts on new vehicles range from 10% to 20% based on fuel type and category. However, these benefits are only valid for three years from the issuance of the COD and do not apply to government or impounded vehicles. Officials said that misuse of CODs undermines the entire objective of the policy.

In March 2023, the government had intensified the crackdown on overaged vehicles. Despite showcause notices to 11 scrappers and orders to deposit scrap value for unclaimed vehicles, compliance has been poor. An official cited inadequate record-keeping and audits at these facilities. The government now plans a comprehensive audit and regulatory overhaul to address violations and improve transparency in the

scrappage process.