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Old 27th August 2023, 09:44   #16
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Re: What is the process to scrap a bike?

Hi all,

I have a 2007 Bajaj XCD 125 bike. It's on my wife's name. We had bought it in hypothecation. Back in the day, we had given post dated cheques and one of them was misplaced by those in Bajaj auto finance.

Long story short, the bike still appears hypothecated. I never got an NOC from the finance. The office that was doesn't exist anymore. Things changed a lot after digitization of Bajaj auto finance too.

The registration expired. Since COVID, I've barely used the bike. Not a lot even before that but at least I used to get it serviced etc. Post COVID, I did get it serviced last in 2021. However, never had to use it.

Now I'm considering giving it off for scrapping. However, the RTO website in Telangana doesn't specify the exact steps.

I reached out to a local scrap buyer and I'm being offered ₹1500. I'm told they'll give a scrap certificate but I'm not sure if that's as simple as that based on previous forum posts I've read here.

I know I'm dumb in this regard. Please help with any suggestions or steps to move forward.

Regards,
Sri Harsha.
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Old 27th August 2023, 10:57   #17
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Re: What is the process to scrap a bike?

Have you tried to go to another branch of Bajaj Auto Finance? I suggest you do at least get the letter and forms from the finance agent to confirm the loan has been officially closed.
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Old 27th August 2023, 11:13   #18
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Re: What is the process to scrap a bike?

Quote:
Originally Posted by Gordon View Post
Have you tried to go to another branch of Bajaj Auto Finance? I suggest you do at least get the letter and forms from the finance agent to confirm the loan has been officially closed.
Is there any dependency on that if I want to scrap it?
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Old 27th August 2023, 11:21   #19
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Re: What is the process to scrap a bike?

The best option is to get it scrapped at the local guy. If you have to scrap it officially at the RTO, you have to ensure the paper work is clear and dues are paid until the date of scrapping. That means you will have to get the hypothecation done and if your passing has expired, you will have to pay the penalty due from the original date of passing until the date you scrap it.

For your peace of mind, when you scrap it, you can ask the local guy to scrape off the engine number and chassis number in front of you. The rest of the bike will be his to sell in parts though.

Last edited by v12 : 27th August 2023 at 11:23.
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Old 27th August 2023, 11:42   #20
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Re: What is the process to scrap a bike?

Quote:
Originally Posted by v12 View Post
The best option is to get it scrapped at the local guy. If you have to scrap it officially at the RTO, you have to ensure the paper work is clear and dues are paid until the date of scrapping. That means you will have to get the hypothecation done and if your passing has expired, you will have to pay the penalty due from the original date of passing until the date you scrap it.

For your peace of mind, when you scrap it, you can ask the local guy to scrape off the engine number and chassis number in front of you. The rest of the bike will be his to sell in parts though.
I think I'll do this. This makes sense. Thanks a lot.
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Old 27th August 2023, 11:57   #21
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Re: What is the process to scrap a bike?

Quote:
Originally Posted by bhappyharsha View Post
Is there any dependency on that if I want to scrap it?
You will require this for two reasons:
1. If you're doing it through the RTO procedure.
2. If you don't want anyone chasing you years later regarding the loan closure. If you already had closed the loan officially, then ignore. Else, get the official loan closure letter from the bank/agent.
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Old 27th August 2023, 13:51   #22
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Re: What is the process to scrap a bike?

Quote:
Originally Posted by bhappyharsha View Post
I reached out to a local scrap buyer and I'm being offered ₹1500. I'm told they'll give a scrap certificate but I'm not sure if that's as simple as that based on previous forum posts I've read here..
You could also exchange it as scrap when buying another two-wheeler. This way it goes through the a dealership. However, they may look at the hypothecation part and refuse to take it further. Still a better bet than going to a local scrapper. The other safe way is to sell the bike as scrap but have the engine and chassis numbers filed away in your presence.
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Old 4th September 2023, 19:42   #23
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Re: Scrappage policy approved, to come into effect from April 2022

In September 2023, I made an intriguing discovery – neither Andhra Pradesh nor Telangana were offering any incentives for individuals scrapping their vehicles. While I had heard that certain states did provide such benefits, I decided to proceed with scrapping my unused vehicles at home without any government assistance.

Here's my account of why I felt the need to scrap my old vehicles and how I went about doing it in Hyderabad.

At home, we had two idle two-wheelers: my first vehicle, an Apache 150 from 2006, and my father's Kinetic Nova 110 from 2003. It seemed like whenever we purchased a vehicle, the model would either be discontinued shortly after or the entire company would cease operations in India. This was a recurring theme with the four vehicles we've owned over the years

A bit about the Kinetic Nova: My father's Kinetic Nova served us faithfully for around a decade. However, frequent issues arose due to the unavailability of parts, even at Mahindra spares. This became a persistent problem, and local mechanics were unable to do much without access to the necessary parts. Consequently, we ended up leaving it parked in our designated spot for years. Following my father's relocation from Guntur to Hyderabad post-retirement, we found ourselves in a dilemma – we couldn't decide whether to renew its RC, scrap it, or sell it to dealers.

Regarding my Apache: Both my father and I are sticklers for rules. When I moved to Bangalore for a job that lasted a year, I took my Apache with me. I obtained a No Objection Certificate (NOC) from the RTA Hyderabad and paid the required road tax in Bangalore. At that time, I was uncertain whether I would settle down in Bangalore, and part of my motivation for postponing the registration change was to avoid potential traffic fines. Upon my return to Hyderabad after a year, I was unaware of the need to cancel the NOC at the Bangalore RTA. Later, when I wished to upgrade to a larger bike, I couldn't sell the Apache due to the NOC being in Bangalore. Some prospective buyers suggested purchasing and using the vehicle without transferring the RC, but I declined and retained ownership. After I purchased a car, I rarely used the Apache, and it began experiencing frequent issues. Despite changing several components, such as the carburetor, front disc calipers, lock system, and both tires, it continued to pose starting problems. Neither the TVS service nor local mechanics could provide a definitive fix, leading me to cease using it altogether. Nevertheless, I still held a fondness for the vehicle.

My Exploration into Vehicle Scrapping:
With four vehicles already occupying the apartment parking area, in addition to our two unused vehicles, it started to feel as though we were monopolizing the common parking space . Thus, I began my quest to locate a reputable scrap dealer via online research, ultimately discovering CERO Recycling. CERO is a joint venture between MSTC Ltd. (a Government of India Enterprise) and Mahindra Accelo. Given their solid reputation, I initiated contact by submitting my details through their website.

On the same day, I received a response, inquiring about basic vehicle information such as make, year of manufacturing/registration, vehicle type, city, and my contact details. After supplying the requested data, I received a phone call from their customer service team. The representative was courteous and patiently addressed my queries regarding their scrapping process, documentation, and related matters. Here's a summarized account of our discussion:

Free Vehicle Pickup: CERO provides free vehicle pickup services, including towing.

Pricing: They offer ₹1,500 for scooters and ₹2,000 for motorcycles, regardless of their condition, brand, or initial purchase value.

Documentation: CERO takes care of all necessary documentation, including a stamp paper agreement and a pickup receipt, which they provide during the pickup.

Payment: Payment is processed through a bank transfer after the vehicle reaches their storage facility.

Subsequently, they requested additional details:
  • Vehicle Pictures
  • RC (Registration Certificate) Scan Copy
  • Bank Account Number
  • Bank Branch and IFSC Code
  • Pickup Address and Contact Information
I prepared and shared the required content in PDF format for both vehicles. It took them two days to obtain their internal approvals. A day before the scheduled pickup, my father and I each received a ₹1 test credit in our bank accounts, presumably to verify the accuracy and genuineness of the provided bank account details. On the day of pickup, they arrived promptly at the location and invited us to come down to sign the necessary documents.

They had prepared the agreement on ₹100 stamp papers, and it was exceptionally detailed and professionally executed. I was pleased to see their meticulous organizational approach. They also took photographs of us with our vehicles for their records and completed the signing process. I scanned the documents using my mobile phone, and they provided us with a copy of the receipt on CERO letterhead.

A day later, we received an email confirming that the vehicles had been inspected and were scheduled for scrapping. Subsequently, the agreed-upon amounts were credited to our bank accounts.

Overall, the process went exceedingly smoothly, and I'm highly satisfied with CERO's services. The only downside is the absence of government benefits associated with vehicle scrapping, as confirmed by CERO and my own research.

For your reference, here are some pictures:
Vehicle Loading
What is the process to scrap a bike?-apache-pickup.jpg
What is the process to scrap a bike?-nova-pickup.jpg
Vehicle Scrap Assurance receipt (I am purposefully not uploading the agreement on Stamp Paper)
What is the process to scrap a bike?-assurance.jpg
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Old 11th September 2023, 15:49   #24
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Re: Scrappage policy approved, to come into effect from April 2022

Quote:
Originally Posted by achagamreddy View Post
how I went about doing it in Hyderabad.
Thanks for sharing the details. What about cancellation of RC ? Does CERO takes care of that ?
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Old 11th September 2023, 18:20   #25
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Re: What is the process to scrap a bike?

Hi All,

I have a 2006 Activa which I want to scrap. MahindraCero rep says I need to onboard the details of vehicle on vahaan portal. Then they will pick up and do the scrapping. As per them this is mandatory now post 1st Aug 2023
They also want original RC of the vehicle at time of pickup, which I dont understand why

Others ( Scrapoto and others) dont mention about this step to onboard vehicle on vahaan portal.

Hence confused. What is the right process. Anyone else who has done a scrapping since Aug 2023? What are the actual steps

Regards,
Balpreet
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Old 12th September 2023, 09:22   #26
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Re: Scrappage policy approved, to come into effect from April 2022

Quote:
Originally Posted by cnu View Post
Thanks for sharing the details. What about cancellation of RC ? Does CERO takes care of that ?
No, once the process is completed from their side. They sent me a document that says scrapping is completed along with the metal piece cut from the vehicle that has the chassis number. These have to be submitted to RTO by the owner and get the RC cancelled. CERA does not take any responsibility of that.
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Old 12th September 2023, 12:02   #27
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Re: What is the process to scrap a bike?

Quote:
Originally Posted by balpreetsingh View Post
Hi All,

I have a 2006 Activa which I want to scrap. MahindraCero rep says I need to onboard the details of vehicle on vahaan portal. Then they will pick up and do the scrapping. As per them this is mandatory now post 1st Aug 2023
They also want original RC of the vehicle at time of pickup, which I dont understand why

Others ( Scrapoto and others) dont mention about this step to onboard vehicle on vahaan portal.

Hence confused. What is the right process. Anyone else who has done a scrapping since Aug 2023? What are the actual steps

Regards,
Balpreet
Refer to https://www.team-bhp.com/forum/india...ml#post5618217 (Scrappage policy approved, to come into effect from April 2022)
I think it should help.
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Old 12th September 2023, 12:19   #28
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Re: Scrappage policy approved, to come into effect from April 2022

Quote:
Originally Posted by achagamreddy View Post
No, once the process is completed from their side. They sent me a document that says scrapping is completed along with the metal piece cut from the vehicle that has the chassis number. These have to be submitted to RTO by the owner and get the RC cancelled. CERA does not take any responsibility of that.
Thanks.

As you mentioned, they took scanned copy of RC. When I reached out to the Cero represenative in Mumbai, he told me since Aug 1st 2023, the process has changed.

From your experience I see some change now.

1) He needs my original RC. Which I am not comfortable with
2) He said verbally the RC cancellation they will do. But nothing of that is mentioned in their ageement ( he shared some screen shots)
3) One point in their agreement point 2.2 was very generic ( It is - All approvals and certificate to be taken by vehicle owner) I asked the Cero sourcing head about which approval and certificate? He also has no clue and has gone back to Legal team. Now legal team has no ETA to respond.
4) He asked me to update my scooter's details on Vahaan portal and pick CERO as a recycler ( which I have done for now) -- Were you asked to do this?

Regards,
Balpreet

Last edited by balpreetsingh : 12th September 2023 at 12:23.
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Old 2nd October 2023, 13:26   #29
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Re: Scrappage policy approved, to come into effect from April 2022

Quote:
Originally Posted by balpreetsingh View Post
1) He needs my original RC. Which I am not comfortable with
Have you gone ahead with the process? Did CERO took the RC and unregistered the bike? Asking since I also have a 2004 bike & want to go ahead with scrapping in Pune.
Thanks
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Old 2nd October 2023, 19:12   #30
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Re: Scrappage policy approved, to come into effect from April 2022

Quote:
Originally Posted by Pran View Post
Have you gone ahead with the process? Did CERO took the RC and unregistered the bike? Asking since I also have a 2004 bike & want to go ahead with scrapping in Pune.
Thanks
Finally CERO picked up my activa on saturday and today got an email about the payment trigerred from their end. Actuall transfer might take few days though.

It wasn't a smooth process though. Sourcing team goofed up. Finally when I got to talk to the recycling plant head, then process got streamlined.

They have taken the original RC. I have been told:

1) Once the scrapping is done, they send the details to the relevant RTO about proof of scrapping. Then the deregistration process should get done. However as its a govt dept, timelines they cannot comment about.

2) I have the assurance of sale letter from CERO ( on their letter head) and that would serve as a proof till further steps of deregistration is done.

Regards,

Balpreet
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