ARTICLE: RTO Hypothecation Removal Process - Step by Step Guide

Technocrat · 25th February 2010, 18:58

Thanks.

But what has time taken for a process got to do with corruption I mean I got most of RCs(for car & bikes) after 2-3 months in Pune as well.

aargee · 26th February 2010, 08:09

Very good article & sorry to say that has instilled fear within me.
I'd bought a used WagonR in 2006 Mar & had taken a loan for around 30% from citi bank; I foreclosed the loan during 2007 Apr. After the closure, say around by May 2007, I received a hypothication cancelled letter in the Citibank's letter head; I didn't worry much about it because
1. The car was registered under my name when I'd bought it during 2006 Mar from a car dealer in Chennai with "No Hypothecation" to the bank
2. The insurance till date also has only my name & no where hypothecation being mentioned
3. I haven't seen an "NOC" for the car till date
4. Till date I don't have any issues with Citibank or from RTO (or may be no problems so far)

Do I've to really worry about it? Is everything OK? After reading this post, I've a question in my mind as why the bank's hypothication is not being mentioned in the car's RC book. Can someone help me understand pls?

Technocrat · 26th February 2010, 11:48

Aargee If there was no Hypothecation on your RC & insurance then you dont need to worry.

But since you say that Citibank gave you a Hypothecation removed NOC I suggest you get the RC record checked in your RTO.

As for RTO causing problem, well there is no Problem, The Hypothecation only is an issue while selling the car (transferring ownsership) or if your car is lost/fully damaged & you need full compensation from Insurance.

benbsb29 · 26th February 2010, 13:10

For Bangalore, Indranagar RTO, centhil's post which i have provided below was very useful for me. Everything worked just like he mentioned. I also took along Condor with me when going, just in case some knowledge of Kannada was required.

Bangalore_RTO_Hypothecation_removal

iamswift · 26th February 2010, 13:40

Quote:

Originally Posted by sukiwa

Photocopies may need to be attested/notorised.

I did the Hypo removal for my bike couple of years back.
No need for attested photocopies.
Remember you are also submitting the originals. I see no point in attestation.
===
Here in TN, I see this process somewhat simple.
1. Paid the fees at payment counter - Here itself they enter vehicle details in computer and gives a receipt.
2. Give all the docs to officer incharge for hypo removal along with the fees payment receipt.
3. He asked for a A4 size envelope with Rs.20 stamp attached to it. This is for sending the RC back to me via post - Not sure if this step is really required. Officer on seeing me applying hypo removal directly might have asked me to get it. I obviously get it from the stationery shop inside the RTO compound. He could have given it back to the stationery shop and encashed

4. Officer asked me to comeback at particular date. (Then why the envelope?)
He also endorsed the date on my counterfoil of fees receipt.
5. Went to RTO on specified date and got the RC back.
Just two day trip to RTO.

Abhay · 26th February 2010, 13:43

Kedar, excellent post and right on time for me too as I have to do this process before end of March.
Thanks again!

ps: sukiwa, thanks to you too :-)

nkapoor777 · 26th February 2010, 13:53

Thanks for the effort Technocrat!

I recently did the HP removal for my car and it took me less than five minutes at the Janak Puri RTO in Delhi to submit all the documentation and fees. I was told to come after 20 days and collect the new RC Smart card and bingo, when I landed there in 3 weeks time, it took me another 5 minutes to pick it up from the counter. Trust me guys, it is really not a scary process if you have done your research and are informed about the process. Stay away from the agents!

On the other hand, my lender Maruti Countrywide (GE Money) sent me an NOC each for self, RTO and insurance company. Along with it came two copies of Form 35 as well which was signed and stamped by them in the requisite places. I simply arranged for the other docs and got it done. Easy, isn't it!

aargee · 26th February 2010, 14:13

Quote:

Originally Posted by Technocrat

Aargee If there was no Hypothecation on your RC & insurance then you dont need to worry.

But since you say that Citibank gave you a Hypothecation removed NOC I suggest you get the RC record checked in your RTO.

As for RTO causing problem, well there is no Problem, The Hypothecation only is an issue while selling the car (transferring ownsership) or if your car is lost/fully damaged & you need full compensation from Insurance.

Thanks. But Sir, why didn't they mention the hypothecation in the RC in the first place?

FRgt · 26th February 2010, 14:13

Nice article. You don't need an agent for any RTO work. Always remember one thing. If you have a problem at the RTO talk to a man/woman in uniform. They will know the correct procedure and will be able to help you better than the clerks.

Technocrat · 26th February 2010, 15:17

Thanks Guys

Like others too have posted, its a simple procedure & can easily be done on our own.

@aargee - Thats what puzzles me too as to why there is no mention of hypothecation on your RC

FRgt · 26th February 2010, 16:39

Quote:

Originally Posted by aargee

I'd bought a used WagonR in 2006 Mar
1. The car was registered under my name when I'd bought it during 2006 Mar from a car dealer in Chennai with "No Hypothecation" to the bank

Do I've to really worry about it? Is everything OK? After reading this post, I've a question in my mind as why the bank's hypothication is not being mentioned in the car's RC book. Can someone help me understand pls?

Which all forms and papers did you submit to the RTO when you transferred the vehicle to your name? Did you include any letter from Citibank and did they stamp and sign any form. If not then, there is no hypotication endorsement on your RC. Just go ahead and sell the vehicle. In any case if there is an endorsement which they forgot to endorse on the book, it will be there in the records and the NOC will not be issued.
Simplest thing to do if you don't remember is go to the RTO and speak to a MVI or AMVI and he/she will guide you. Nothing to worry as you cannot be penalised for this. This is either the fault of the bank or the RTO.

nkrishnap · 26th February 2010, 17:22

Nice documentation there Technocrat. Thanks

As a matter of fact never use the middlemen for any of the RTO works, its just spending more money. After computerization the transfers, etc are all much easier than what it was earlier.

aeroamit · 26th February 2010, 20:19

Really a very handy for getting job done on your own. For me surely this is going to help as, I am yet to get my Hypothetication canceled even though loan was closed 5 years back and get my vehicle registered in Bangalore.

Thanks

PingleWood · 28th February 2010, 21:52

an excellent & thorough article. another thumbs up

for all you passionate team-bhp members!

Technocrat · 1st March 2010, 14:02

Thanks nkrishnap, aeroamit & PingleWood

I am glad that you guys liked it

25th February 2010, 18:58	#16
Technocrat Senior - BHPian Join Date: Feb 2004 Location: GTA Posts: 14,765 Thanked: 2,705 Times	Thanks. But what has time taken for a process got to do with corruption I mean I got most of RCs(for car & bikes) after 2-3 months in Pune as well.
	() Thanks

26th February 2010, 08:09	#17
aargee Senior - BHPian Join Date: Jan 2010 Location: TSTN Posts: 6,355 Thanked: 10,071 Times	Very good article & sorry to say that has instilled fear within me. I'd bought a used WagonR in 2006 Mar & had taken a loan for around 30% from citi bank; I foreclosed the loan during 2007 Apr. After the closure, say around by May 2007, I received a hypothication cancelled letter in the Citibank's letter head; I didn't worry much about it because 1. The car was registered under my name when I'd bought it during 2006 Mar from a car dealer in Chennai with "No Hypothecation" to the bank 2. The insurance till date also has only my name & no where hypothecation being mentioned 3. I haven't seen an "NOC" for the car till date 4. Till date I don't have any issues with Citibank or from RTO (or may be no problems so far) Do I've to really worry about it? Is everything OK? After reading this post, I've a question in my mind as why the bank's hypothication is not being mentioned in the car's RC book. Can someone help me understand pls? Last edited by aargee : 26th February 2010 at 08:10.
	() Thanks

26th February 2010, 11:48	#18
Technocrat Senior - BHPian Join Date: Feb 2004 Location: GTA Posts: 14,765 Thanked: 2,705 Times	Aargee If there was no Hypothecation on your RC & insurance then you dont need to worry. But since you say that Citibank gave you a Hypothecation removed NOC I suggest you get the RC record checked in your RTO. As for RTO causing problem, well there is no Problem, The Hypothecation only is an issue while selling the car (transferring ownsership) or if your car is lost/fully damaged & you need full compensation from Insurance.
	() Thanks

26th February 2010, 13:10	#19
benbsb29 Team-BHP Support Join Date: Nov 2006 Location: Brisbane Posts: 10,108 Thanked: 14,216 Times View My Garage	For Bangalore, Indranagar RTO, centhil's post which i have provided below was very useful for me. Everything worked just like he mentioned. I also took along Condor with me when going, just in case some knowledge of Kannada was required. Bangalore_RTO_Hypothecation_removal
	() Thanks

26th February 2010, 13:43	#21
Abhay BHPian Join Date: Apr 2005 Location: Pune Posts: 727 Thanked: 12 Times	Kedar, excellent post and right on time for me too as I have to do this process before end of March. Thanks again! ps: sukiwa, thanks to you too :-)
	() Thanks

26th February 2010, 13:53	#22
nkapoor777 BHPian Join Date: Nov 2006 Location: New Delhi Posts: 609 Thanked: 147 Times	Thanks for the effort Technocrat! I recently did the HP removal for my car and it took me less than five minutes at the Janak Puri RTO in Delhi to submit all the documentation and fees. I was told to come after 20 days and collect the new RC Smart card and bingo, when I landed there in 3 weeks time, it took me another 5 minutes to pick it up from the counter. Trust me guys, it is really not a scary process if you have done your research and are informed about the process. Stay away from the agents! On the other hand, my lender Maruti Countrywide (GE Money) sent me an NOC each for self, RTO and insurance company. Along with it came two copies of Form 35 as well which was signed and stamped by them in the requisite places. I simply arranged for the other docs and got it done. Easy, isn't it!
	() Thanks

26th February 2010, 14:13	#24
FRgt BANNED Join Date: Jul 2009 Location: India Posts: 24 Thanked: 5 Times	Nice article. You don't need an agent for any RTO work. Always remember one thing. If you have a problem at the RTO talk to a man/woman in uniform. They will know the correct procedure and will be able to help you better than the clerks.
	() Thanks

26th February 2010, 15:17	#25
Technocrat Senior - BHPian Join Date: Feb 2004 Location: GTA Posts: 14,765 Thanked: 2,705 Times	Thanks Guys Like others too have posted, its a simple procedure & can easily be done on our own. @aargee - Thats what puzzles me too as to why there is no mention of hypothecation on your RC
	() Thanks

26th February 2010, 17:22	#27
nkrishnap Distinguished - BHPian Join Date: May 2006 Location: Bangalore Posts: 3,989 Thanked: 7,465 Times View My Garage	Nice documentation there Technocrat. Thanks As a matter of fact never use the middlemen for any of the RTO works, its just spending more money. After computerization the transfers, etc are all much easier than what it was earlier.
	() Thanks

26th February 2010, 20:19	#28
aeroamit BHPian Join Date: Feb 2010 Location: Bangalore Posts: 107 Thanked: 132 Times	Really a very handy for getting job done on your own. For me surely this is going to help as, I am yet to get my Hypothetication canceled even though loan was closed 5 years back and get my vehicle registered in Bangalore. Thanks
	() Thanks

28th February 2010, 21:52	#29
PingleWood Newbie Join Date: Feb 2010 Location: Navi Mumbai Posts: 7 Thanked: 0 Times	an excellent & thorough article. another thumbs up for all you passionate team-bhp members!
	() Thanks

1st March 2010, 14:02	#30
Technocrat Senior - BHPian Join Date: Feb 2004 Location: GTA Posts: 14,765 Thanked: 2,705 Times	Thanks nkrishnap, aeroamit & PingleWood I am glad that you guys liked it
	() Thanks