Saturday, January 2, 2010

hypothecation Removal from RC Book


This is my first blog but not about me but about day to day issues which I face and fight to resolve them myself. This blog is about removal of Hyothecation from RC (Registration Certificate) book. This is specific to RTO office Indira Nagar, Bangalore and hoping this is applicable to all over India.

When you finance your vehicle from a bank or any finance agency, despite you make >50% cash payment of the vehicle cost, you are not a designated owner of your own vehicle yet, until you repay the entire loan amount to financial institute. RC book also mention that Vehicle belongs to bank. Once you repay entire loan amount by paying entire EMI installments or foreclose your loan, bank sanction you NOC for the same. In my case it was ICICI and I received NOC letter within 3 weeks of my loan closure.

Once you obtain NOC from the bank, you have to produce the same to RTO office where your vehicle has been registered to remove the hypothecation and become full owner of your own vehicle. Very interesting but a bitter true -:). Unfortunately this is not a simple job though because you have to interact with hell lots of middle men and different processes. I have faced the same when I approached to RTO office. I has been stopped approximately 5 such middle men who asked first the nature of work, then explain some complicated procedures and finally demanded 7x of actual amount which I was suppose to spend.

I was quite determined to do it myself because it was vacation period for me (year end shutdown) hence no issue of timing. And surprisingly it was very simple and easy which is hard to believe. Thanks fully govt offices are changing, and people are co-operative (Its not a sarcastic but a true statement -:).

1. Bank will provide you NOC letter with partially filled up form 35. You need yo put your signature and data/place.

2. Take Xerox copy of pollution check certificate as well as Insurance paper. Both must have validity at the time of submission. If not then do it first.

3.Take original RC book.

4. A self addressed envelop with 25 Rs stamp paper. For speed post to receive your RC book at your home address.


1. Pay Rs 100, as Hypothecation removal fees and collect recipt
2. Put your signatures on the form 35, attach Xerox of pollution check, Insurance and fees paid receipt.
3. Show it on a designated counter and get an administrative check (No tips needed -:))

4. Submit the same to another window and obtain an ack receipt.

Job is simple...RC book will reach to your address within 2 weeks. Maintain the receipt for your reference until you get your original RC.

Entire process took me 2 hrs...thats it....I spend more than this time to negotiate with middlemen, however deal didn't go though. This is just a matter of knowing complete procedures.

I know this is very simple job, but really I felt so cool after doing it that decided to write this blog in the middle of night...locally its 1:45 AM.

Good night and catch you soon...