Difference Between RVSF and Scrap Dealer License
Many applicants assume that a scrap dealer license is enough to start vehicle scrapping. In reality, RVSF and scrap dealer licenses are legally, operationally, and regulatorily very different. Treating them as interchangeable is one of the fastest ways to face rejection, penalties, or closure.
Legal Status & Authority
An RVSF (Registered Vehicle Scrapping Facility) is a centrally recognised facility governed by MoRTH and approved by the State Transport Department. It is digitally integrated with the VAHAN system, giving it statutory authority to deregister vehicles permanently.
A Scrap Dealer License, on the other hand, is issued by local bodies or state departments (Municipal Corporation, ULB, Industries Dept.). It does not have any authority to deregister vehicles or issue scrapping certificates.
➡️ Key reality:
Only an RVSF can legally scrap vehicles. A scrap dealer cannot.
Scope of Operations
RVSF
Handles End-of-Life Vehicles (ELVs)
Performs depollution, dismantling, and material segregation
Issues Certificate of Vehicle Scrapping (CVS)
Enables RC cancellation on VAHAN
Scrap Dealer
Deals in metal, paper, plastic, general scrap
Cannot dismantle vehicles as per ELV norms
Cannot issue CVS
Cannot touch RC data or vehicle deregistration
➡️ Vehicle scrapping done under a scrap dealer license is treated as illegal dismantling.
Pollution & Environmental Compliance
RVSF
Mandatory Orange Category classification
Requires CTE + CTO from SPCB
Hazardous waste authorisation
Depollution systems (oil, fuel, coolant, AC gas)
Scrap Dealer
Often Green or unclassified
Limited or no hazardous waste handling
No depollution obligation
➡️ SPCB inspections for RVSF are much stricter and site-based.
Fire & Safety Requirements
RVSF
Mandatory Fire NOC
Fire hydrants, extinguishers, emergency exits
Layout approval & fire tender access
Scrap Dealer
Basic fire safety (often local norms)
No industrial fire clearance in many states
➡️ Fire NOC is non-negotiable for RVSF.
Infrastructure & Land Norms
RVSF
Approved industrial land
Impermeable flooring
Segregated zones for depollution, dismantling, storage
CCTV & record keeping
Scrap Dealer
Yard or godown-based
No mandatory zoning segregation
Minimal infrastructure scrutiny
Inspection & Audit Exposure
RVSF
Inspected by:
Transport Department
Pollution Control Board
Fire Department
Subject to suspension or cancellation for violations
Scrap Dealer
Periodic local inspections
Limited cross-department oversight
Our talented crew
Adv Rajeev Ranjan
Adv Gaurav Kumar
Mrs. Rathi
