The short answer is Yes.
If your vehicle still has an active loan, hypothecation with a bank/NBFC, pending finance dues, or ongoing legal disputes, you can legally initiate the vehicle scrapping process until these issues are completely resolved.
The lender remains the legal financial stakeholder of the vehicle until the loan is fully repaid and the hypothecation is removed from the Registration Certificate (RC). Therefore, any government-registered vehicle scrapping process requires clear ownership documentation before dismantling the vehicle.
At Carbasket Vehicle Scrapping Facility, we help customers understand the documentation process and guide them through the legal requirements before accepting financed vehicles for scrapping.
When a vehicle is purchased using a bank loan or finance company loan, the vehicle is registered with Hypothecation.
This means:
Therefore, the loan must first be settled before the vehicle becomes eligible for scrapping.
Before initiating vehicle scrapping, the owner should complete the following:
Only after these formalities can the vehicle be processed for legal scrapping.
If your vehicle was financed, you may need the following documents before scrapping:
This confirms that the vehicle loan has been fully repaid.
The lender certifies that it has no financial claim on the vehicle.
Form 35 is used to remove the hypothecation endorsement from the RC. It is typically issued by the financing institution after loan closure and submitted to the RTO for hypothecation cancellation.
The RC should reflect that the hypothecation has been removed, where required by the applicable RTO process.
Examples include:
Any government-approved address proof.
Original Registration Certificate.
If someone else is submitting the vehicle, an authorization letter may be required.
Attempting to scrap a financed vehicle without completing legal formalities can lead to several issues:
Following the correct procedure protects both the owner and the financier.
Repay the complete vehicle loan.
Collect:
Complete hypothecation removal as required by the RTO.
Ensure no legal disputes or outstanding liabilities remain.
Contact Carbasket for inspection and quotation.
Submit required ownership documents.
Vehicle is dismantled through the legal scrapping process.
Receive the applicable scrapping documentation issued by the scrapping facility.
Carbasket assists vehicle owners by:
Important: Vehicle owners remain responsible for clearing loans, resolving legal issues, and completing any RTO procedures required under applicable regulations before scrapping.
Carbasket offers:
Carbasket assists in scrapping:
Carbasket provides vehicle scrapping assistance across Maharashtra, including:
Carbasket Vehicle Scrapping Facility - H Block, 181, Old Mumbai - Pune Hwy, MIDC, Chinchwad, Pimpri-Chinchwad, Maharashtra 411019.
Serving Pune, Pimpri-Chinchwad and surrounding regions with vehicle inspection support, quotation assistance, pickup coordination (where available), and documentation guidance.
For the latest office address, contact details, and service availability, visit www.carbasket.in or contact the Carbasket support team.
No. The loan should be completely closed before initiating vehicle scrapping.
If the vehicle has hypothecation with a bank or finance company, Form 35 is generally required as part of the hypothecation removal process.
Yes. The bank should issue a No Objection Certificate confirming that all dues have been cleared.
It is an official document issued by the lender confirming that the vehicle loan has been fully repaid.
No. Only the bank or finance company can close the loan. Carbasket assists after the necessary financial and legal formalities have been completed.
Yes, after the owner has cleared the outstanding loan, obtained the required lender documents, and fulfilled applicable legal requirements.
The legal case must be resolved before the vehicle is submitted for scrapping.
Pickup assistance is available in many serviceable locations, subject to vehicle condition and operational coverage.
Yes, provided the loan is fully settled, lender permissions (if applicable) are completed, and ownership documents are in order.
Yes. Carbasket provides vehicle scrapping assistance across Maharashtra and supports customers across India, subject to service availability.
A vehicle with an outstanding loan or unresolved legal issues should not be scrapped until all financial obligations are cleared and the necessary documentation—such as the Loan Closure Letter, Bank NOC, and Form 35 (where applicable)—has been obtained. Completing these steps helps ensure that the scrapping process is legally compliant and free from future disputes.
Carbasket Vehicle Scrapping Facility supports vehicle owners with documentation guidance, transparent quotations, environmentally responsible dismantling, and convenient scrapping services across Maharashtra and India, making the process straightforward once all legal and financial requirements have been fulfilled.
