Mismatches in the generation of certificates of deposit (COD) and vehicle scrapping, and non-compliance with the Central Pollution Control Board (CPCB) guidelines have been flagged as the Ministry of Road Transport and Highways (MoRTH) suspended nine Registered Vehicle Scrapping Facilities (RVSFs) from participating in the government auctions.
The RVSFs, officials said, have been suspended from the Metal Scrap Trade Corporation Limited (MSTC), a PSU under the Ministry of Steel, and can no longer access the Government e-Marketplace (GeM) auction. The MoRTH has also asked the registering authorities in states to take action against these RVSFs. Officials said that the e-auction access to the nine suspended RVSFs will be reinstated after they submit satisfactory proof that RVSFs are compliant with the MoRTH-notified rules and CPCB guidelines.
In a letter written to the state transport department of all states and UTs, the transport section of MoRTH underlined that there is also a large gap in the number of government vehicles purchased in auctions for scrapping and the number of CoDs generated by the RVSFs, which is a mandatory requirement. “As per Rule 14 of the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021, RVSFs are required to conduct audits in every financial year and submit the audit reports in the National Single Window System portal by May 31….It has been noted that a large number of RVSFs have failed to submit the audit reports for the financial year 2024-25…All such RVSFs are requested to submit the audit reports immediately…” it reads.
It also says that, additionally, it has also been brought to MoRTH’s notice that some RVSFs across the states are non-compliant with CPCB guidelines of “environmentally sound management of ELVs”. For example, they have been found selling engines recovered from scrapped vehicles, and scrapping procured government vehicles through e-auctions at local scrap yards.
“Such a practice poses a challenge to the successful implementation of the policy…Further, it has also been highlighted that RVSFs are issuing the CODs without digitally signing them…this makes the COD unable to be traded or utilised, thus rendering the individuals unable to avail the incentives under the policy…All the RVSFs are requested to ensure that all CODs may be digitally signed to avoid further non-compliance,” reads the letter, also marked to RVSFs.
Explaining the process, an official said, “The RVSFs are found to be trading CoDs without scrapping the vehicle as people get concessions in purchasing new vehicles by showing the certificate. On the other hand, they sell vehicles in other states, for profits, where overage vehicles are allowed to ply”