For decades, India’s old and unfit vehicles have ended up in unregulated scrap markets major cities in India such as Chor Bazar - Shivajinagar (Bengaluru), Bhadurpura (Hyderabad), Pudupet (Chennai), Mayapuri (Delhi), Mullick Bazar, Kolkata and Kurla (Mumbai).
Although these markets are popular due to easy access and quick cash transactions, they operate without government approval, without documentation, and without any safety or environmental standards.
This creates a dangerous ecosystem where old vehicles are mishandled, misused, or recycled illegally — while the original owner remains unaware and legally responsible.
Let’s break down why these markets are risky and why India urgently needs documented, authorised scrapping.
❌ 1. No RC Cancellation - The Biggest Hidden Danger
The most serious problem with informal scrap markets is that they do not cancel the vehicle’s RC (Registration Certificate).
Without proper RC cancellation:
- The vehicle still exists in VAHAN under your name
- It can be repaired and resold
- It can accumulate challans, fines, or traffic violations linked to you
- It may be used for criminal activities
- You remain legally liable even if the car is long gone
Imagine your old car being used somewhere in India years after you “scrapped it”—with no proof you ever sold it.
This is exactly what happens in unregulated markets.
❌ 2. Illegal Resale & Criminal Misuse
In these markets, many vehicles are:
- Repaired and resold in rural areas
- Used for theft or transport of illegal materials
- Cloned using tampered chassis numbers
- Re-registered using forged paperwork
Because there is no documentation, you cannot prove you are no longer the owner.
❌ 3. Zero Documentation = Zero Proof
Informal scrap dealers do not provide:
- Certificate of Vehicle Scrapping (CVS)
- Certificate of Disposal (CoD)
- Scrapping video proof
- Chassis cut images
- Any legal paperwork
A verbal deal or handwritten slip cannot protect you in a legal dispute.
❌ 4. Environmental Damage & Toxic Waste
Unregulated scrap markets operate with no safety or environmental norms.
Hazardous materials like:
- Engine oil
- Brake fluid
- Coolants
- Battery acid
- Plastic waste
are dumped carelessly, contaminating soil, groundwater, and nearby residential areas.
Technologies like depollution machines, oil-separator systems, and safe recycling protocols do not exist in these yards.
❌ 5. Unfair Prices & Manipulated Weighing
Common malpractices include:
- Weight manipulation
- Cash deductions for “tyres,” “battery,” etc.
- Non-digital scales
- Price cuts at the last moment
Customers almost always receive far lower scrap value than what is fair.
❌ 6. Highly Unsafe Working Conditions
These yards use:
- Gas-cutting torches without safety gear
- Manual dismantling
- Child labour
- No fire safety systems
Several accidents and fires have been reported in Mayapuri, Chor Bazar - Shivajinagar, Mullick Bazar, and Kurla.
The story of Shivajinagar Market customer (Supriya Sircar Dasgupta) ; its GUJLI , not gujri. also known as "chor bazar" as stolen car parts and stolen vehicles are quickly cannibalized here. many Indian cities have these old car markets. in calcutta, Mullick Bazar is a well known go to place for second hand car parts. my father and brother were both vintage car restorers. scouring these city car parts markets was essential to their work in restoring rare vintage cars. my father picked up a rare 1929 Mercedes Benz from the gujli in 1966 for five thousand bucks. it was almost intact but a lot of body refurbishment had to be done. on verifying the car s vintage , the Mercedes company in Stuttgart affirmed that this was a limited edition and only three known models were listed on their records.
Why India Needs Authorised, Transparent Scrapping — The Carbasket Solution
This is where Carbasket brings transformation.
Carbasket ensures your old vehicle is scrapped legally, safely, transparently, and with full documentation — eliminating all risks associated with informal markets.
♻️ How Carbasket Solves These Problems
⭐ 1. Authorised Scrapping at Government-Approved RVSFs
Carbasket scrapping is conducted only through Registered Vehicle Scrapping Facilities compliant with:
- MoRTH guidelines
- Pollution control rules
- Waste management laws
This ensures safe and lawful dismantling.
⭐ 2. Guaranteed RC Cancellation
This is our strongest USP.
Carbasket ensures:
- RC cancellation on VAHAN
- Digital confirmation from RTO
- A legally safe transfer of ownership status
- That you are no longer liable for the vehicle
This alone eliminates 90% of the risk associated with informal scrapping.
⭐ 3. Transparency Through Scrapping Video + Chassis Cut Proof
Every customer receives:
- Detailed scrapping video
- Chassis-cut image
- Dismantling documentation
This removes all chances of misuse.
⭐ 4. Certificate of Vehicle Scrapping (CVS)
This is the official proof that your vehicle is permanently scrapped.
No local scrap dealer can provide this.
⭐ 5. Certificate of Disposal (CoD) for Discounts
With CoD, customers get:
- Up to 25% discount on new vehicle road tax (state dependent)
- Additional manufacturer incentives
CarBasket also provides a CoD Marketplace, where customers can sell or re-trade CoDs if they don’t plan to buy a new vehicle.
⭐ 6. Free Doorstep Pickup + Best Scrap Value
Carbasket offers:
- Free pickup anywhere
- Digital weighing
- Transparent per-kg pricing
- Instant payment
Customers get fair value without last-minute surprises.
🟩 Comparison Table: Unregulated Scrap Market vs Carbasket
Feature Unregulated Market Carbasket
RC Cancellation ❌ No ✅ Guaranteed Help
Legal Status ❌ Unauthorised ✅ Govt-Approved Company
Documentation ❌ None ✅ CVS + CoD + Video Proof
Transparency ❌ Zero ✅ Full Video + Chassis Cut
Environmental Safety ❌ Hazardous ✅ Eco-Friendly Processes
Pricing ❌ Manipulated ✅ Fair Digital Weighing
Safety Standards ❌ Unsafe ✅ Govt-certified facility
Misuse Risk ❌ Very High ✅ Zero misuse
🔥 Final Summary
Unregulated scrap markets may seem convenient, but they are dangerous, illegal, and risky.
Carbasket provides a safe, legal, transparent, and environmentally responsible alternative — protecting customers from:
- Legal risks
- Financial liabilities
- Criminal misuse of old vehicles
- Environmental damage
Carbasket is not just a scrap service — it is India’s trusted solution for safe vehicle retirement.
FAQs: Unregulated Vehicle Scrap Markets & Carbasket Scrapping
1. What are unregulated vehicle scrap markets?
Unregulated scrap markets are informal clusters like Shivajinagar (Bengaluru), Bhadurpura (Hyderabad), Mayapuri (Delhi), and Kurla (Mumbai) where old vehicles are dismantled without government approval, documentation, or environmental safety standards.
2. Why are unregulated scrap yards dangerous for vehicle owners?
Because they do not cancel the RC, meaning the vehicle legally remains in your name. If the vehicle is misused, resold, or involved in crime, you can face legal trouble, fines, or police notices.
3. Can an informally scrapped vehicle still show up under my name in VAHAN?
Yes. Without authorised scrapping and official RC cancellation, the vehicle will stay active in VAHAN indefinitely.
4. Do unregulated scrap dealers provide a scrapping certificate?
No. They do not issue:
- Certificate of Vehicle Scrapping (CVS)
- Certificate of Disposal (CoD)
- RC cancellation receipt
- Video or chassis-cut proof
You have no evidence the vehicle was scrapped.
5. What illegal activities can happen with vehicles sold to informal scrap markets?
Vehicles may be:
- Repaired and resold
- Used in rural areas without documentation
- Cloned using tampered chassis numbers
- Used for smuggling or crime
- Registered illegally in another state
Since your RC is active, you remain liable.
6. Are unregulated scrap yards harmful to the environment?
Yes. They dispose harmful materials like engine oil, brake fluid, coolant, and batteries directly into land and drains, causing:
- Soil contamination
- Water pollution
- High emissions
- Fire hazards
7. Why do local scrap yards offer lower value for old vehicles?
Because they use manual weighing, make last-minute deductions, and operate without any pricing standards. Customers often get 30–40% less than fair scrap value.
8. How does Carbasket ensure safe and legal scrapping?
Carbasket works only with government-authorised and ensures:
- RC cancellation on VAHAN
- Scrapping video + chassis-cut proof
- CVS + CoD documentation
- Transparent pricing
- Eco-friendly dismantling
- Free doorstep pickup
9. What documents does Carbasket provide after scrapping?
You receive:
- Certificate of Vehicle Scrapping (CVS)
- Certificate of Disposal(CoD)
- Chassis-cut proof
- Scrapping video
- RC cancellation help
These protect you from liability.
10. What is the CoD Marketplace offered by Carbasket?
If you don't want to buy a new vehicle, you can sell or re-trade your CoD through Carbasket, converting it into financial value.
11. Is authorised scrapping mandatory in India?
Yes. Under the National Vehicle Scrappage Policy, only Vehicle Scrapping Facilities (AVSF) can legally dismantle and certify vehicle scrappage.
12. How does Carbasket protect customers from fraud and misuse?
By ensuring:
- Full documentation
- RC cancellation help
- Legal traceability
- Transparent communication
- Secure scrapping workflow
This eliminates all risks associated with local scrap markets.
