ARTICLE: RTO Hypothecation Removal Process - Step by Step Guide

[vikasshu]

Originally Posted by Midas

How long are the documents that I obtained from bank for loan closure valid? I obtained these almost

Dear Midas, my SBI guy ( 2 days back) told me to get the thing closed in 3 months time period from the date mentioned on Form 35. Actually there is a space to mention date on Form 35.

I think you cross check with your bank once before visiting RTO.

Regards Vikas

[libranof1987]

Got this done for my car recently in Pune:

1) Collect all the documents:
a) two copies of Form 35, NOC each (received from the bank)
b) PUC
c) Original RC
d) Insurance copy
e) Address proof (Aadhar)
f) DL

2) Pay the fee online (Rs. 250) and take a print/two for convenience

3) Drop the form at RTO.
a) In Pune, there's a counter (32 if I remember correctly) where you get everything checked and stamped by the head lady there
b) Submit it at Counter 26
c) Get an acknowledgement

4) Received the RC (a smart card, thankfully) in two weeks

RTO sure has come a long way, for the better. I even got a message asking for feedback on the service. They need to start live tracking of the application going forward.

[prsnck]

One info needed team.

Part 1: F.C Renewal

For F.C renewal is hypothecation cancel entry in RC is mandatory ?
I have my KA-04 registered 2003 RX 135 (still on friend's name) FC renewal due in Dec 2018.

Part 2 : Hypothecation removal

It has an hypothecation entry due to loan taken for 11 months and is closed then. And there is no entry of hypothecation removal in RC till now.
Now my friend does not have any documents pertaining to loan closure and related documents. It is from HDFC bank in Malleswaram branch, Bangalore.

If i go to bank with RC and vehicle details can they issue me a NOC, Form 35 so that I can go to RTO for hypo cancellation.

Please help to how I can proceed with.

regards
prsn

[libranof1987]

Originally Posted by prsnck

Part 2 : Hypothecation removal

It has an hypothecation entry due to loan taken for 11 months and is closed then. And there is no entry of hypothecation removal in RC till now.
Now my friend does not have any documents pertaining to loan closure and related documents. It is from HDFC bank in Malleswaram branch, Bangalore.

If i go to bank with RC and vehicle details can they issue me a NOC, Form 35 so that I can go to RTO for hypo cancellation.

Assuming your friend uses HDFC NetBanking, he can even request for the documents online (under the Loans tab).

And of course, visiting the branch. Should be straightforward.

Since the bike is in your friend's name, it is best you take him along when you submit the documents to get Hypothecation removed. Or ask what is an acceptable power of attorney document. Because, at least in Pune, the RTO guy did check whether the same person who owned the vehicle came to submit documents.

[prsnck]

Originally Posted by libranof1987

Assuming your friend uses HDFC NetBanking, he can even request for the documents online (under the Loans tab).

And of course, visiting the branch. Should be straightforward.

Since the bike is in your friend's name, it is best you take him along when you submit the documents to get Hypothecation removed. Or ask what is an acceptable power of attorney document. Because, at least in Pune, the RTO guy did check whether the same person who owned the vehicle came to submit documents.

Thanks Libran for the confidence booster. Went to HDFC bank on a saturday (one should never go on a weekend for bank work - that's where all people are on a saturday. And adding woes to that their server went down. Anyways I knew a second visit is obvious for any bank and RTO related works. Nevertheless I'm a vehicle enthusiast ). Inquired the details. Here are the excerpts since I need to collect form 35 and NOC for the bike I'm using which is still on my friend's name for the hypothecation cancellation :

1. Loan account no. is not mandatory, vehicle regn no. seems fine
2. A statutory authorization form they will ask to fill with RC owner two signature along with self attested ID proof of RC owner and own signature
3. Also need the person's original ID proof who is collecting on behalf
4. Copy of RC book (Original if it's there keep it handy I suggest)
5. Penalty Rs. 500-/ via debit or credit card payment (not sure why cash they don't accept - will check when I do it) since as they have already despatched the original NOC when loan was closed in 2004. So this is for duplicate NOC.

So guys wish me all the best for wednesday I'm planning to do the same and get 2 Form 35 and NOC for my RX-135 hypothecation termination from RTO later. I believe no other surprises in store.

Hope this info help fellow bhpians, will post the outcome after this week.

regards
prsn

[NPV]

Posting an experience of a friend at Indiranagar (KA 03) RTO, now located in Kasturi Nagar.

He visited the RTO with all the relevant documents including the Form 35 (loan was from a nationalised bank) and a valid PUC. There were about 2-3 other people also waiting in line with similar documents for hypothecation removal. The person at the counter rejected all of them saying there have been cases of 'counterfeit' Form 35's recently, so they will need to get a letter from the bank saying the person who has signed the Form 35 is an authorised signatory

My friend then visited the bank branch and the manager there was also very surprised and said that all he can do is sign it and stamp his name seal (again, since this was already there!). With about half the day gone in this, my friend was unable to go back to the RTO to resubmit

Has anyone experienced something similar or know what can be done ?

I suggested to him (in case they still do not accept it tomorrow), to ask the clerk/officer at the RTO to mention the reason for rejection on a paper/letter with the person's seal/stamp and signature!

[audioholic]

Originally Posted by NPV

Posting an experience of a friend at Indiranagar (KA 03) RTO, now located in Kasturi Nagar.

Just guessing, perhaps there have been similar attempts done before with fake forms. I heard from an Uber driver that some drivers are not paying the EMI these days due to both less income and malicious intentions and some of them are trying this trick to remove the hypothetication and selling the car to make some good bucks at the banks loss.

However, since there was no justification given on what is fake and so, I would not back the RTO either.

[Yieldway17]

Originally Posted by audioholic

Just guessing, perhaps there have been similar attempts done before with fake forms. I heard from an Uber driver that some drivers are not paying the EMI these days due to both less income and malicious intentions and some of them are trying this trick to remove the hypothetication and selling the car to make some good bucks at the banks loss.

Just recently read in newspaper that Kerala RTOs have removed the requirement for banks to validate the Form 35 after a owner submits for hypothecation removal. Reason cited was that it was a time consuming process and most banks didn't bother to respond to RTOs apparently. And now in other states, it's going the other way.

Reading your comment, I wonder if banks need to come up with a digital way for RTOs to validate if the documents submitted are genuine. Just a simple web page where RTOs can feed in the vehicle number and the software checks with bank's systems to see if the loan has been closed should solve this problem.

Anyway, until a solution like this can be implemented, I believe it's not the job of RTOs to enforce the validity of Form-35s. If banks find that someone had forged a fake Form-35, they need to pursue criminal action through legal means, not harass RTOs.

[NPV]

Originally Posted by audioholic

However, since there was no justification given on what is fake and so, I would not back the RTO either.

In this case, the RTO person said a letter from the bank needs to be produced that confirms and mentions the name and designation of the authorised signatory (of the Form 35) and the bank said they do not have any such official letter format for this. In fact the manager said he cannot issue a letter saying he is an authorised signatory, so he just signed again!
If this doesn't work, my friend will probably need to contact higher authorities in the bank or a banking ombudsman ?

Few years ago, for my car I remember that the form 35 and NOC I received from the bank had holograms affixed on the documents, not sure if that's a standard practice across banks and if that will make things better in this current scenario.

[audioholic]

Originally Posted by Yieldway17

Just recently read in newspaper that Kerala RTOs have removed the requirement for banks to validate the Form 35 after a owner submits for hypothecation removal. Reason cited was that it was a time consuming process and most banks didn't bother to respond to RTOs apparently. And now in other states, it's going the other way.

Though I am unaware of the legality, I am surprised such a thing can happen. From how much I know, hypothecation is what defines that the bank has a stake in the car for which a loan is issued. Other than that, I am not sure if a bank can claim a car if there is no Hypothecation. Even if they show the transactions done in the loan, what if the car is sold to someone and the ownership is transferred? The bank will have to try to seize a car which is no more in the name of the borrower which is again not possible. Will they lodge a cheating case against the borrower and the RTO?

[Yieldway17]

Originally Posted by audioholic

Will they lodge a cheating case against the borrower and the RTO?

I'm not a lawyer but the new owner and RTO doesn't get into picture much except maybe as a witness. This is a simple case of forgery and cheating by the person who borrowed the money for the bank to pursue.

[NPV]

Originally Posted by NPV

Posting an experience of a friend at Indiranagar (KA 03) RTO, now located in Kasturi Nagar.

Update:
My friend visited the RTO office again, this time a different person was at the counter and the documents were accepted without any objections and he could pay the fees and submit at another counter.
So, this seemed more like some individual clerk/officer's interpretation to ask for a letter certifying/confirming the authorised signatory of the bank issued form 35.

[pranavGTI]

Originally Posted by pranavGTI

Today I went to RTO Pune for Hypothecation removal.

I finally got the RC with hypothecation terminated after a month and half. RTO had dispatched the RC via speed post exactly in a month but nobody was there at my home to collect, so the RC was returned to RTO and finally landed at the GPO at Sadhu Vaswani chowk. I got it collected by showing a copy of ID and address proof from the GPO. In Pune atleast there are no re-attempt to deliver at home address.

[varunswnt]

MH-14 RTO Hypothetication Removal

I check with agent for this exercise and he quotes me Rs.2500. Without even another thought, jumped to this thread and collated all necessary information for self processing.

1. Got NOC and Form-17 from Bank on 4th,Aug'18 (Below steps are mandatory at Pimpri Main branch)
a. Paid online fees of Rs.250 for Hypothetication Removal on Praviahan
b. Took print of payment receipt and Form-35
c. SBI signed and stamped Form-35 and handed me NOC and Form-17
2. Made a set of 2 copies each for all required documents
2. Attached online payment receipt along with document set
4. On 29th,Aug'18 Visited Counter-12 on 2nd Floor at MH-14 RTO
5. Personnel at counter verified the documents and cross checked identity with Original Aadhar. Asked me to mention mobile number and sign Form-35.
6. Personnel now checked his system for application number mentioned on payment receipt
7. After confirming, he asked me to leave. I was confused at just 1 window processing, so I asked him again what next, he replies that you will receive RC by post and it is done, not even paper acknowledgement.
8. I checked with others who were in same queue in front of me and even they were informed same as me. After me there was an agent along with his client and it was all same for agent as well.

That's it, the whole thing took me hardly 30 mins and only Rs.250 and I didn't even have to go desk to desk.

Tbhpians from MH14 let me know if this was the case for you or I missed something here.

[fiat_tarun]

I recently sold my Chennai registered car and handed over the loan NOC documents as well for removal of hypothecation. I just got a call from the buyer saying that the RTO (Sholinganallur) is asking for an email to be sent from the bank confirming the loan closure since the process has now moved online !

Apparently this is a new process that has started a week back. Anyone else know more about this ?