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The vehicle owners and producers will have to pay environmental compensation for failing to comply with the provisions of the rule
The government is set to enforce revised rules for scrapping the end-of-life vehicles in April.
The government announced it would enforce Environment Protection (End-of-Life Vehicles) Rules, 2025 on April 1, the draft of which was shared last year.
The revised rules will apply to the producer, registered vehicle owners, Registered Vehicle Scrapping Facility, bulk consumers, collection centres, automated testing stations and entities involved in the handling, processing and scrapping of End-of-Life vehicles.
How Owners Must Scrap Their End-of-Life Vehicles?
The registered owner and bulk consumer of the vehicles must ensure that they get tested as per rule 52 of the Central Motor Vehicles Rules, 1989 and section 56 of the Motor Vehicles Act, 1988.
According to the Motor Vehicles (Registration and Functions of Vehicles Scrapping Facility) Rules, 2021, after the vehicle reaches its end of life, the owner needs to drop the vehicle at any of the producer’s designated Collection centres or designated sales outlet or Registered Vehicle Scrapping Facility within 180 days.
The bulk consumers will have to register on the State Board’s centralised online portal. They need to mention the details of the End-of-Life vehicles as well as those that they own in the annual return filed in Form 2 on or before June 30 for the previous financial year.
What Is Environmental Compensation? How It Can Be Imposed On You?
If there is a failure in compliance with the provision related to End-of-Life vehicles resulting in damage to the environment, the bulk consumer, Registered Vehicle Scrapping or any producer will be slapped with environmental compensation. The amount of the compensation will be equal to the loss suffered by the environment, as per the guidelines issued by the Central Board.
The compensation will only be imposed by hearing the other party involved in the matter.
The environmental compensation will be imposed on the producer by the Central Board and the bulk consumer and Registered Vehicle Scrapping Facility by the State Board.
If the bulk consumer, producer or scrapping facility eventually complies with the provision, their environmental compensation will be returned to them.
If the provisions are followed within one year, the other party will receive 75% of the environmental compensation; in two years, 60% of the environmental compensation; and in three years, 40% of the environmental compensation.
The compensation collected from people will be kept by the Central Board or State Board in a separate account.
The government will use environmental compensation to restore the damage or loss caused to the environment or health by the non-compliance of the procedures.
Govt To Set Up Centralised Online Portal
A centralised online portal will be established by the Central Board within six months after the rules of registration are published and returns are filed by producers and bulk consumers.
On the portal, the Central Board at all times will reflect the data mentioned on the receipt of End-of-Life vehicles as well as the waste materials of the Registered Vehicle Scrapping Facility.
The Registered Vehicle Scrapping Facilities and producers will be able to exchange Extended Producer Responsibility certificates on the centralised online portal.
The centralised online portal will be used by the State Board for registering the Registered Vehicle Scrapping Facility and bulk consumers. They will also be able to file returns through the portal.
