I own a Maruti Esteem which I bought around 6 years ago. Like any salaried guy, I bought it on a vehicle loan from a bank. This fact is marked on the registration certificate of the car and is known as hypothecation. Once I complete loan payment, I can remove this from RC card and the process is know as hypothecation termination.
Usually the bank will send a confirmation letter and 2 copies of form 35 indicating that my loan is closed and then I can take complete ownership of the car. This involves filing the form 35 with Motor Vehicles department and removing hypothecation from the RC card. This is important since this makes you the real owner of the car and you can easily sell it anytime you want.
However even after completely paying the loan, I never received any documentation from the bank. After waiting for a while I contacted my bank branch and they promptly gave loan completion certificate and form 35 and I even got an offer for a new loan! The loan completion certificates are addressed to RTO and Insurance company and form 35 is addressed to RTO for removing hypothecation from records. I used the new online application Website provided at http://www.keralamvd.gov.in/ to cancel hypothecation and change permanent address in RC card. This involved online application, online payment and submission of documents at the RTO. Within a month I got the new RC card through registered post.
This article provides a step by step guide on removing Hypothecation and changing address on your new RC card. Note that changing address is optional, however many people will have a different address now than the one they had at the time of car purchase. This guide is specific for Kerala (I had done it from Trivandrum RTO office). In places like Bangalore and Delhi the hypothecation removal process seems complex than in Kerala. Even in Kerala, the process is far from simple. However the newly introduced online system makes it somewhat easier.
Detailed Steps for Vehicle Hypothecation Removal in Kerala
The overall process for changing Vehicle hypothecation in Kerala is as follows,
- Step 1 (Only if address change is required) : Take photocopy of your address proof (I used passport copy). Get it attested from a gazetted officer by showing the original. The accepted address proof documents are Election card, Passport, Aadhar, Ration card, Govt. ID card, Govt. Payslip and Others approved RA (no idea what that is!)
- Step 2 : Ensure that you have paid all dues to the motor vehicle department. If you have bought your car before 2008, ensure that you have paid one time cess of Rs.100 (for cars). Usually you might have paid the cess and endorsed it on RC card. But in my case I had paid the cess but hadn’t endorsed it on RC card and hence had to submit copy of it. Ensure that photocopies of all your payments are attached with your application.
- Step 3 : Visit http://www.keralamvd.gov.in/ and from the right side menu, select Cancel Hypothecation. Fill out the application for Hypothecation termination by selecting RTO, Vehicle registration number and last 5 digits of chassis number (see RC card). You also need to pay the fees online. The total fee I paid is Rs. 175. After the fee is paid, you get an e-Receipt in PDF form. This contains your personal copy and the copy you need to submit to RTO. Important thing to note here is that within 3 days of submitting online application, you need to submit the documents at the RTO office.
- Step 4 (Only for address change) : Visit http://www.keralamvd.gov.in/ and from the right side menu, select Change of Address in RC. Fill out the application for RC address change application by selecting RTO, vehicle registration number and last 5 digits of chassis number (see RC book). You can change permanent address, temporary address or both. Once you enter your address, you will get filled Form 33 in PDF form which needs to be submitted to RTO along with other documents. You also need to pay the fees online. The total fee I paid for this is Rs.35. After the fee is paid, you get an e-Receipt in PDF form. This contains your personal copy and the copy you need to submit to RTO. Important thing to note here is that within 3 days of submitting online application, you need to submit the documents at the RTO office.
- Step 5 : Buy a paper file or plastic file for organizing documents and ensure that you have the originals of RC card, pollution certificate and insurance certificate in it. Note that you need originals. Ensure that you keep 2 copies of these documents for your own personal use at home/car. Add signed Form 35 received from bank, confirmation letter from bank, signed Form 33 printed after applying for address change and attested address proof document to the file. If you have paid one time cess separately, add a photocopy of the same. Use a paper clip to hold all documents together.
- Step 6 : Visit RTO office around 10AM. You need 2 envelops with stamps along with your application. The first envelop requires a stamp of Rs. 25 (for sending documents to bank from RTO) and the second envelop requires a stamp of Rs. 40 (for sending the new RC card to your home). You can get this from a nearby shop around RTO. In Trivandrum, you can get this from a nearby telephone booth. Add these envelopes to your file.
- Step 7 : Visit the reception counter at RTO office and submit your paper file with all documents attached. Ensure that your fee receipts are in front. This allows the officer to quickly scan the Transaction number and locate your online application. He will verify all the documents and then will forward you to the relevant counter. At this counter, your application will be accepted and a receipt will be issued. You can keep this receipt along with photocopies of your RC card/insurance/pollution certificate in your vehicle.
- Step 8 : You need to wait for 2 to 4 weeks to get the new RC card. In order to track your application, you can use the transaction numbers in your fee receipts at MVD website. The transaction number is of the form A/XXXXX/YYYY. If you have applied for address change and hypothecation cancellation, you have 2 transaction numbers. Visit http://www.keralamvd.gov.in/ and then select RTO File Status on the left menu. You need to enter transaction number to get the details. The possible statuses seem to be Entered, Verified and Printed. Once printed, you can expect the registered post of your RC card along with original insurance and pollution certificate any time at your new address.
Document Checklist for Hypothecation Removal in Kerala
- Photocopy of address proof (for address change) attested by a gazetted officer
- Signed form 33 (for address change, obtained from MVD Website after submission of online application)
- Signed form 35 (obtained from bank) and confirmation letter (obtained from bank)
- Original RC card, pollution certificate, insurance certificate (this is returned along with new RC card, however keep copies at car/home for your personal use)
- Copy of one time cess of Rs.100 (Usually required for vehicles bought before 2009)
- e-Payment receipts for online application of address change (if required) and hypothecation termination
- 2 envelopes with Rs.25 stamp and Rs.40 stamp. Ensure that Rs.40 stamped envelop has your new address
One thing I have noticed over the years is that it is the ignorance and lack knowledge of laws/rules which breeds corruption. As long as you have good legal understanding of the things and you follow the rules and procedures, you can get most of the government stuff done without paying bribe or getting the help of "agents". So far my interaction with Motor Vehicle department in Kerala has been hassle free. The new online application process is a huge help in this regard. To know more about MVD online application process check out the following links,
July 29, 2013 | Posted in DIY 13 Comments » | By Jayson Joseph