ARTICLE: RTO Hypothecation Removal Process - Step by Step Guide

sbraj · 5th March 2010, 23:10

Very detailed and thorough info in this thread. Technocrat, a round of applause for you.

I have some doubts on the procedure. In my case, address and in turn RTO jurisdiction has got changed.

Where should I go for hypothecation process - old RTO or new RTO? RC book still has the old address mentioned.

Since my address has got changed, would RTO require a proof of address? What documents would they accept? Bank (SBI/ICICI) statement or landline (Airtel) bill original would do?

NOC received is to the new address. But the copy for RTO do not mention any address. Rather it has the registration number only. But copy for insurance company has address mentioned.

Any help would be highly appreciated.

Technocrat · 8th March 2010, 12:29

Thanks sbraj

I think you should go to the same RTO which issued you the initial RC.

Sorry but I dont have much information on the address change process.

BenjiRoss · 12th March 2010, 16:08

I need to start the ball rolling for me.
Close loan, remove hypothecation, sell car and change name.
I have one month as I need to go abroad!
Is one month enough.
The guy at HDFC bank where my loan is said it would take 15 days for the NOC to be issued after loan closure!!

Technocrat · 12th March 2010, 16:23

HDFC charges Rs250 if you want to collect the NOC sooner, at least that's what they told me here in Pune.

bullock-Car · 12th March 2010, 22:08

I have a strange problem, I have my M-800 bought in Nov-95 with fianance from Nagarjuna finance ltd,Bangalore.
After one year after loan completion they gave a no clearance certificate. I thought that was end of it. Now I am checking that RC book has the vehicle hypothecated to them and procedure is to get NOC from company on RTO forms and the firm does not exist. (Nagarjuna fianance ltd. is no-whever traceable.
I dont know what to do with this strange problem.

raka1o · 13th March 2010, 03:10

Bullock-Car

I suggest you go to RTO office and enquire about this. there are agents who can help you to get this sorted. I went to Koramangala RTO last week to terminate the hypothication.

BenjiRoss · 15th March 2010, 08:38

Quote:

Originally Posted by Technocrat

HDFC charges Rs250 if you want to collect the NOC sooner, at least that's what they told me here in Pune.

I spoke to the person and he said this was not possible.
Don't know why.

One more query. Is the pre-closure charges (5%) negotiable? Can I request that it be reduced?

Technocrat · 15th March 2010, 11:08

I don't know, I did pay the closure charges. What I didn't was the Rs250 that they charge if you pick the documents yourself instead of they couriering it.

Abhay · 22nd March 2010, 17:00

Did the 2nd trip to RTO today in my quest for hypothecation removal from my RC and will get the new smart card in about 4 days.

Cost Rs 450 and total time spent inside RTO Pune in 2 trips = 30 minutes
(that too on monday mornings) and no attested copies needed either.

Thanks to you Techno once again for the very timely thread

S5157 · 19th April 2010, 10:04

I just did my HP removal from KR Puram RTO, Bangalore. I initially went to an agent who asked for RS 650 and said it will take two weeks.Also The RC will be send by post which I did not wanted as I changed my address and it is not reflecting in RC. Luckily I met an Agent near KR Puram RTO who charged only Rs 350 and did the work in 4 days and gave the RC back in Hand.

sbraj · 19th April 2010, 14:32

Quote:

Originally Posted by S5157

Also The RC will be send by post which I did not wanted as I changed my address and it is not reflecting in RC. Luckily I met an Agent near KR Puram RTO who charged only Rs 350 and did the work in 4 days and gave the RC back in Hand.

Did RTO ask for any docs (like notary) to prove your current address? Or it is not needed? I am too in similar situation.

KiloAlpha · 19th April 2010, 15:03

Quote:

Originally Posted by nowwhat?

In Karnataka, should you go to the same RTO where registration was done?

My car is KA03. Does anyone know which RTO office it is? Can I just go to the Koramangala BDA complex which is nearer?

Thanks in anticipation.

Yes, you should go to the same RTO where the registration was done. KA-03 is Indiranagar (or, to be more exact, Bangalore East).

Indiranagar RTO is in the BDA Complex, just off Old Madras Road.

faridsahmed · 19th April 2010, 17:16

Thanks Technocrat
That was a nice post and I am sure that this would help a lot of other guys including myself. I have just finished my loan, took NOC from my bank - but did not go to RTO yet (very lazy). Also I was not aware of the time limit on this NOC! Good that I went through this thread. I had visited few driving schools in Kothrud, Pune asked them the the charges for this job - all of them quoted Rs 1000 minimum !!! On this I decided to do the Job myself.

I have just one small query : My car is 9 months old and I do not have a PUC (don't require one till 1st year). Do I still need to get this just for the sake of RTO paperwork?

thedreamcatcher · 19th April 2010, 17:44

Technocrat. Nice writeup

However, I have one question. I moved from Gurgaon to Bangalore recently and want to know, if I sell my car, what will be the process to remove hypothecation.

I know I have to get in touch with my bankers for the NOC etc, but as far as the RTO work is concerned, do I need to personally go the Gurgaon RTO or can i do it via post or something. Alternately, if I sell it here to an agent, can i let them take care of the headache (Also, how much can they take care. For instance if I exchange my car or sell it to someone like Mahindra First Choice)

avinash_m · 19th April 2010, 18:28

I am having a nightmare with regards to transferring the car in my name. BTW, mine is Thane registered and since travelling to Thane RTO was not possible I decided to get the work done through an agent.

After getting the bank NOC (60 days validity) from the previous owner I enquired with the local RTO guy (at one of the driving schools) about the requisite documents I'd need and the only thing seemed pending was an address proof as I am not local to Mumbai. Per his suggestion, since I'd an LIC policy of my earlier state, I did an address change to my present Mumbai address (which took 2-3 weeks). Took the receipt of address change and tried starting the process but the RTO was closed for almost a whole week. Fed up with the agent (and his response), I located another one (again a driving school) in Bhayander and went to him. All this time, the NOC expiry was coming close and I made sure the papers were ok for him to start the HP cancellation process. Meanwhile, had to go to my hometown for a week. While I was there, a guy from the driving school calls me and tells me something pretty strange. Since the RC book is having a Nashik address (of the owner), the HP cancellation can only be done at Nashik RTO!! And by now, the NOC had expired as well!! I blasted the guy coz he's confirmed that papers were good to go ahead and I'd reminded him repeatedly about the NOC expiry! Came back from home and got back all the papers that I'd submitted.

On the previous owner's recommendation, went to another driving school guy in Worli. At first, citing that LIC policies are no longer valid address proofs (only Passport and Election card are) he just flatly refused to do anything. Also, to make matters worse NOC validity has also expired. On much pleading, he agreed to keep the Xerox copies of NOC, RC and LIC address proof receipt to check whatever is possible and assured me that he'll get back by Tuesday of this week. I am still in dark as to what should I do now?! The only assurance he's given is 'Sir, if I am taking then I'll definitely do something!'

What should I do guys!? :-(( Would really appreciate your inputs!!

Thanks,

5th March 2010, 23:10	#46
sbraj Senior - BHPian Join Date: Mar 2008 Location: B L R / T V M Posts: 1,071 Thanked: 9 Times	Very detailed and thorough info in this thread. Technocrat, a round of applause for you. I have some doubts on the procedure. In my case, address and in turn RTO jurisdiction has got changed. Where should I go for hypothecation process - old RTO or new RTO? RC book still has the old address mentioned. Since my address has got changed, would RTO require a proof of address? What documents would they accept? Bank (SBI/ICICI) statement or landline (Airtel) bill original would do? NOC received is to the new address. But the copy for RTO do not mention any address. Rather it has the registration number only. But copy for insurance company has address mentioned. Any help would be highly appreciated.
	() Thanks

8th March 2010, 12:29	#47
Technocrat Senior - BHPian Join Date: Feb 2004 Location: GTA Posts: 14,813 Thanked: 2,700 Times	Thanks sbraj I think you should go to the same RTO which issued you the initial RC. Sorry but I dont have much information on the address change process. Last edited by Technocrat : 23rd April 2010 at 17:59.
	() Thanks

12th March 2010, 16:08	#48
BenjiRoss Senior - BHPian Join Date: Jul 2008 Location: Tamilnadu Posts: 1,066 Thanked: 1,330 Times	I need to start the ball rolling for me. Close loan, remove hypothecation, sell car and change name. I have one month as I need to go abroad! Is one month enough. The guy at HDFC bank where my loan is said it would take 15 days for the NOC to be issued after loan closure!!
	() Thanks

12th March 2010, 16:23	#49
Technocrat Senior - BHPian Join Date: Feb 2004 Location: GTA Posts: 14,813 Thanked: 2,700 Times	HDFC charges Rs250 if you want to collect the NOC sooner, at least that's what they told me here in Pune.
	() Thanks

12th March 2010, 22:08	#50
bullock-Car BHPian Join Date: Nov 2009 Location: Bangalore Posts: 200 Thanked: 169 Times	I have a strange problem, I have my M-800 bought in Nov-95 with fianance from Nagarjuna finance ltd,Bangalore. After one year after loan completion they gave a no clearance certificate. I thought that was end of it. Now I am checking that RC book has the vehicle hypothecated to them and procedure is to get NOC from company on RTO forms and the firm does not exist. (Nagarjuna fianance ltd. is no-whever traceable. I dont know what to do with this strange problem.
	() Thanks

13th March 2010, 03:10	#51
raka1o BHPian Join Date: Dec 2009 Location: Bangalore Posts: 47 Thanked: 5 Times	Bullock-Car I suggest you go to RTO office and enquire about this. there are agents who can help you to get this sorted. I went to Koramangala RTO last week to terminate the hypothication.
	() Thanks

15th March 2010, 11:08	#53
Technocrat Senior - BHPian Join Date: Feb 2004 Location: GTA Posts: 14,813 Thanked: 2,700 Times	I don't know, I did pay the closure charges. What I didn't was the Rs250 that they charge if you pick the documents yourself instead of they couriering it.
	() Thanks

22nd March 2010, 17:00	#54
Abhay BHPian Join Date: Apr 2005 Location: Pune Posts: 727 Thanked: 11 Times	Did the 2nd trip to RTO today in my quest for hypothecation removal from my RC and will get the new smart card in about 4 days. Cost Rs 450 and total time spent inside RTO Pune in 2 trips = 30 minutes (that too on monday mornings) and no attested copies needed either. Thanks to you Techno once again for the very timely thread
	() Thanks

19th April 2010, 10:04	#55
S5157 BHPian Join Date: Sep 2009 Location: Muvattupuzha, K Posts: 305 Thanked: 191 Times	I just did my HP removal from KR Puram RTO, Bangalore. I initially went to an agent who asked for RS 650 and said it will take two weeks.Also The RC will be send by post which I did not wanted as I changed my address and it is not reflecting in RC. Luckily I met an Agent near KR Puram RTO who charged only Rs 350 and did the work in 4 days and gave the RC back in Hand.
	() Thanks

19th April 2010, 17:16	#58
faridsahmed BHPian Join Date: Nov 2009 Location: Pune Posts: 155 Thanked: 18 Times View My Garage	Thanks !!! Thanks Technocrat That was a nice post and I am sure that this would help a lot of other guys including myself. I have just finished my loan, took NOC from my bank - but did not go to RTO yet (very lazy). Also I was not aware of the time limit on this NOC! Good that I went through this thread. I had visited few driving schools in Kothrud, Pune asked them the the charges for this job - all of them quoted Rs 1000 minimum !!! On this I decided to do the Job myself. I have just one small query : My car is 9 months old and I do not have a PUC (don't require one till 1st year). Do I still need to get this just for the sake of RTO paperwork?
	() Thanks

19th April 2010, 17:44	#59
thedreamcatcher Senior - BHPian Join Date: Mar 2009 Location: Dubai Posts: 1,204 Thanked: 66 Times View My Garage	Technocrat. Nice writeup However, I have one question. I moved from Gurgaon to Bangalore recently and want to know, if I sell my car, what will be the process to remove hypothecation. I know I have to get in touch with my bankers for the NOC etc, but as far as the RTO work is concerned, do I need to personally go the Gurgaon RTO or can i do it via post or something. Alternately, if I sell it here to an agent, can i let them take care of the headache (Also, how much can they take care. For instance if I exchange my car or sell it to someone like Mahindra First Choice)
	() Thanks

19th April 2010, 18:28	#60
avinash_m BHPian Join Date: Jul 2009 Location: Hyderabad Posts: 367 Thanked: 470 Times	I am having a nightmare with regards to transferring the car in my name. BTW, mine is Thane registered and since travelling to Thane RTO was not possible I decided to get the work done through an agent. After getting the bank NOC (60 days validity) from the previous owner I enquired with the local RTO guy (at one of the driving schools) about the requisite documents I'd need and the only thing seemed pending was an address proof as I am not local to Mumbai. Per his suggestion, since I'd an LIC policy of my earlier state, I did an address change to my present Mumbai address (which took 2-3 weeks). Took the receipt of address change and tried starting the process but the RTO was closed for almost a whole week. Fed up with the agent (and his response), I located another one (again a driving school) in Bhayander and went to him. All this time, the NOC expiry was coming close and I made sure the papers were ok for him to start the HP cancellation process. Meanwhile, had to go to my hometown for a week. While I was there, a guy from the driving school calls me and tells me something pretty strange. Since the RC book is having a Nashik address (of the owner), the HP cancellation can only be done at Nashik RTO!! And by now, the NOC had expired as well!! I blasted the guy coz he's confirmed that papers were good to go ahead and I'd reminded him repeatedly about the NOC expiry! Came back from home and got back all the papers that I'd submitted. On the previous owner's recommendation, went to another driving school guy in Worli. At first, citing that LIC policies are no longer valid address proofs (only Passport and Election card are) he just flatly refused to do anything. Also, to make matters worse NOC validity has also expired. On much pleading, he agreed to keep the Xerox copies of NOC, RC and LIC address proof receipt to check whatever is possible and assured me that he'll get back by Tuesday of this week. I am still in dark as to what should I do now?! The only assurance he's given is 'Sir, if I am taking then I'll definitely do something!' What should I do guys!? :-(( Would really appreciate your inputs!! Thanks,
	() Thanks