ARTICLE: RTO Hypothecation Removal Process - Step by Step Guide

[saravananj]

Originally Posted by PraveenM

Good article Technocrat. Just finished paying off my car loan and promptly took the NOC and Form35 to the Automobile Association of Southern India (AASI). They act as an RTO agent but at very resonable cost. I've always used them for my RTO related work.

The AASI clerk thoroughly checked the documents and he noticied that the Bank's address in the RC book and NOC differed. So I had to go the bank to get the correct stamp. My RTO, TN-07 South-east is not yet issuing Smart card based RC, so the total charges were only Rs.131.

They've said that my RC book should be returned in 10 days.

Do they do this only for AASI members or any one can take their help for hypothecation removal?

[Naturalist]

Just removed hypothecation for my car today at Bangalore Electronic City RTO.
Procedures may be different from one RTO to another.

I have done the following today.

1) Get all the documents mentioned on page 1 in this post.
2) If you have a smart card, wrap it with plastic wrapper if not with plastic cover
3) Get an envelope with Rs 25 worth of stamps affixed on it. This you can get on stationary shops outside the RTO or bring it with you.
4) Staple the smart card on front of the documents and the envelope at the end.
5) Ask for the verification officer. Give all the documents to him and check with him if everything is Ok.
6) If everything is OK, he will sign and ask you to pay Rs 100 at the counter.
7) Go to the counter, pay Rs 100 and get a receipt (with carbon copy too)
8) Staple the receipt and the carbon copy on the front of your documents
9) Then you need to go to the 'Assistant Regional RTO director' or equivalent and get a signature from him. If you do not know where to get signature you can ask the same verification officer about this
10) Once you get the signature, come back to the verification officer and hand over all the documents
11) Complete

They told me that they will post all the documents within 10 working days including the updated RC

[RSR]

Thanks to the thread starter and all others for contributing such useful info!

I've got to get the hypothecation on my motorcycle removed, and found the information very useful. Also passed on the information to a friend who wanted to get the hypothecation on his car removed.

I'm glad to be a part of a community like Team-BHP where such knowledge and information sharing takes place

[kutts]

Kerala - The process is more or less the same. Your get the papers and envelope as mentioned in the forum. The differences are that you do not need to get it signed by anyone in the RTO. You just need to give the papers at the counter. The person at the counter will review it (and give you a nasty look for having all the document ready - he he no bribes ) and give you a small printout as a token that the RC is now with the RTO. They will send the RC to your address in about 30 - 45 days.

[keralshobhit]

Why did i even bothered to google it, I should prefer to say "Team-BHP it". Amazing and informative article. I will be following the procedure for getting a NOC for my Nano and HP removed for my 800 ( Both getting ready to be sold off). I will update the detailed procedure for Shekh Sarai New Delhi RTO after i get it done. Thanks for all help.

[m_upreti]

I got the documents from my Bank and I used the services of an agent (since the RTO is almot 75 Kms from my place). I paid 1500 Rs and got the acknowledgement within a week and the new smart card 10 days later through speed post. The amount pinched initially but the process was hassel free.

[Nicky]

Originally Posted by faridsahmed

Specific to PUNE RTO :
I visited Pune RTO on Thursday morning for the Hypothecation removal process. Had all my papers arranged as mentioned by Technocrat.

• Asked for verification officer and was directed to go to counter no 31.The officer (Mr Thorat) asked me to get all the photocopies attested. I showed him all my original documents then & there - still he insisted to get all photo copies attested.
• Found a "notary guy" sitting in the parking lot who did all the attestation for 30 rupees.
• Went back to same counter no 31 - Mr Thorat checked all papers - signed them and asked me to pay a fee of Rs 100 at counter no 19.
• Paid the fees - but the clerk at this counter did not give me back my papers. He kept them in his draw. I asked him to return so that i could take them to the other counter ( step 5 as mentioned by Technocrat). On this he said the procedure now has changed and this would be done by themselves.
• I again went back to Mr Thorat and narrated him the same - hearing his he also acknowledged the change in procedure. He also cited that the reason behind this was shortage of clerks.
• Mr Thorat has asked me to come after 8 days.

The entire process took 1/2 hr. 11.00am I was out of the office.
Thanks to Tecnocrat & Sukiwa for guiding which made the process simpler and less time consuming.

I am in Pune. Last week i foreclosed my car loan from SBI and got a letter addressed to RTO for hypothecation removal (1 copy) and form 35 (2 copies).
Now i need to go to Chinchwad RTO for hypothecation removal.
I didn't get the NOC. is it really must? should i go back to bank to get it?
did you also need 'trade certificate' as mentioned here?
I am attaching here the letter from Bank. please let me know if it's NOC or Bank Letter.

[hrman]

Originally Posted by Nicky

I am in Pune. Last week i foreclosed my car loan from SBI and got a letter addressed to RTO for hypothecation removal (1 copy) and form 35 (2 copies).
please let me know if it's NOC or Bank Letter.

This appears to be an NOC. You are good to go.

[mempheS.D]

Reading through all this, I feel the AASI is the way to go now. Pay once. And you are rid of worries for a lifetime!

[Technocrat]

Originally Posted by mempheS.D

Reading through all this, I feel the AASI is the way to go now. Pay once. And you are rid of worries for a lifetime!

Can you elaborate on what you mean by AASI?

[mempheS.D]

Oops ! I thought it was a commonly understood abbreviation across the forum. My bad and apologies.

AASI - Automobile Association of Southern India (Automobile Association of Southern India - AASI)

[Technocrat]

Originally Posted by mempheS.D

Oops ! I thought it was a commonly understood abbreviation across the forum. My bad and apologies.

AASI - Automobile Association of Southern India (Automobile Association of Southern India - AASI)

Thanks for Abbreviation but that wasnt my main query, how does it gets rid of Hypothecation issues?

[ghpk]

Me too completed my car loan from ICICI Bank this year, asked the branch about the NOC and form 35, they checked and told it would come to my address directly from Mumbai Office, almost forgot about it, but one fine day around 40-50 days after loan completion i got that envelope.

Got it xeroxed and wanted to visit RTO, but due to some business issue forgot about it completely, one fine day looking for some other doc found the NOC in my filing cabinet, whoooaaah only 4 days left with one holiday and one sunday.
Without wasting time contacted a friend who works for a Insurance agency, he was very kind to promise me to assist it on priority.

He asked for Rs.400/- for removal process, but this would not issue a new copy and Rs.450/- for removal and new RC Certificate, I agreed and visited him paid the money on friday evening, and he took all the pain and got it completed on monday and I had the new RC Certificate with bank name removed on tuesday morning.

I would have drove to RTO which is almost out of the town, towards other end of my town, could have spent not less than Rs.700-800 including petrol so I am sure what i opted for was good and economical.

Secondly I was not able to get this removed from Insurance policy, which is also ICICI LOM. So i think i can change the insurance company upon renewal and save myself from pain of requesting a new copy for Insurance company.

Please correct me if I am wrong, is it ok for me to change Insurance company instead of requesting duplicate of the Certificate from Bank ?

[Nicky]

Today i went to Pimpri Chinchwad RTO in Pune to get hypothecation removed from my Car RC.
I carried following documents:
1. Original RC (wrapped in small poly bag)
2. Bank NOC (original)
3. Form 35 (both orginal copies)
4. PUC (copy)
5. Insurance (copy)
6. ID Proof (Pan card - copy)
7. Trade certificate from SBI Bank (story follows below)

Process in RTO:
1. Go to Room no. 8 : get all the documents verified
2. Go to room no. 3 : get the remark (remark is basically seal and sign of a person)
3. Go to room no. 9 : pay 120 rupees, get the receipt
4. Go to room no. 8 again : submit the documents and receipt (he will write the receipt no. on documents and give you the receipt back). He will ask you to come back after 5 days (i went on Monday and he asked me to come back on friday to collect New RC).

I foreclosed the Loan but SBI person only gave me NOC and form 35. When i asked them for trade certificate on phone, lady was helpful and she asked me to go to their Head office which is in Golibar maidan. I went there and asked them for Trade certificate. They immediately gave it.
Trade certificate is a paper with all the information regarding TAX paid to RTO by Bank. there is no mention of customer or any other info related to vehicle. RTO just needs the number mentioned on this trade certificate.
If you don't have Trade certificate then you have to pay 1000 rupees as fine and get the receipt. then you can get your normal hypothecation process rolling.

I am attaching the Trade certificate which is valid only for 2011 in Pune for SBI Bank people. just make a copy and you are done.
there will be new Trade certificate in 2012.

I saved 1000 rupees of agent as the process was quite simple and took only 20 minutes.
Note: Mods, i have posted this here also
http://www.team-bhp.com/forum/indian...ml#post2607713
but i thought this is official thread and could be helpful so posting here also. if needed, please delete other thread.

[mempheS.D]

Originally Posted by Technocrat

Can you elaborate on what you mean by AASI?

The AASI can do all hypothetication removal processes for you once you are a member. Without the bogging down of walking in and out of RTO offices or getting tossed around. Especially in situations wherein one cannot figure out the local lingo.