Removal of Hypothecation on RC smartcard Procedure Mumbai

Hi, Just starting a new thread so we can have the step wise process for removal of hypothecation in one thread. My question is (pertaining to Mumbai RTO)

1) What papers/forms should I collect from the bank (apart from the car documents originally submitted, after repaying the loan in full?

2) Should I also receive the loan agreement papers in original from the bank on closing the loan or is this not required?

3) Once papers are received, which forms are to be filled for removing of hypothecation? Once the papers are submitted will the RTO issue a receipt? If this process is done by an agent, can we expect a receipt from the agent?

4) Will the RTO issue a new RC smartcard after the hypothecation is removed?

5) If yes, how long would it take to receive the new smart card?

6) If the car is just a year old will the dealer help with the removal of hypothecation process?

Hey Guys,

No response!!! Is there anyone who has had an experience on this?

I can answer half of the question based on my 2 wheeler loan closure. The bank is supposed to send a letter and a form 35 (i am 90% sure about 35) after you have paid the loan amount in full. Typically it is sent to the address you have stated in the loan document.

If you do not receive it, you may request the same and the bank will reissue at a nominal charge. I understand that banks cannot refuse your request. Interestingly the letter is only valid for 3 months and you have to do what is necessary in that time.

If forum members can throw more light on what next...

i went to collect the NOC from a finance company for a 96 cielo for my friend.Those guys took 20 working days and took no  charge.I took the owners signed letter for that and they gave it to me.The car is on his name now,after the owner gave signature on form no 35 which was issued by the finance company.

Hey Guys.

 Does anyone have the format for the NOC from the bank after paying off all the car loan dues? Do we require the car details on that NOC.

My bank has issued the NOC but has only but the bank loan account number on the same, and has not mentioned any car details. Will that suffice for Hypothecation removal from RC and Insurance certificate?

Also,

How many original copies of this NOC should we take from the bank?

You need to have following documents : NOC &  Form 35 from the Bank or Financially Organization, Valid PUC & Car Insurance Photocopy, Originally RC book.

Pls follow following process at the RTO office: Produce the above documents along with the filled Hypothecation confirmation form (In duplicate) and get it endorse by the official / Clerk (Staff would be assigned this job). Take an outward entry number on the Hypothecation confirmation form. Produce or courier this (one) form to your bank or Financially Organization. They would issue another NOC stating the outward entry number. Submit all the above documents along with Hypothecation confirmation form and new NOC having the outward number. RTO officals would process it by verifying records (The vehicle is wanted/pending dues, taxes, etc) and tell you to get ARTO approval. Post ARTO approval, you would have to pay Hypothecation cancellation fees & duplicate RC fees. You get receipt of the same, based on which you can drive your vehicle till you get your new RC smart card. Post this you would need to pay for new SMART card. You need to collect new SMART card after 5-7 working days.

@kayasth: you seem to have done your Hypothecation cancellatiion at APMC RTO in Navi Mumbai. Can you let me know what where the total charges you incurred for it?

Hypothecation Cancellation Procedure
Place: RTO @ A.P.M.C, Navi Mumbai
RTO timings:
Monday to Friday: 11 a.m. to 2 p.m.
Number of trips required to RTO: 3
Number of trips required to Financial Institution: 1
Total Cost Incurred:600

After the Loan Repayment The Financial institution sends you the following documents
Closure Letter
Form 35 (2nos) - both addressed to RTO.
NOC (2nos) - one addressed to RTO & other to Your Insurance Company.

First Visit to the RTO
Documents Required on first visit to RTO:
1. Original RC Book
2. Original FORM-35 (2 Copies)
3. Original NOC addressed to RTO (Not the one addressed to Your Insurance Company)
4. Xerox Copy of Insurance
5. Xerox Copy of PUC.
After verifying your above documents, you will be given two Application Letters for Hypothecation Cancellation from the RTO which will be addressed to your Financial Institution with an Outward number on both the forms. You need to take this form to your financial institution.

First Visit to the Financial Institution
Carry all the above documents to your financial Institution along with the two Application forms for Hypothecation Cancellation, one will be kept by the financial institution while the other will be returned to you with the Confirmation Letter which you will require to submit at the RTO.Please make sure the Outward no. is mentioned in the Confirmation Letter.

Second Visit to the RTO
Submit the following documents at the RTO.
1. Original RC Book
2. Original FORM-35 (2 Copies)
3. Original NOC (Not the one addressed to Your Insurance Company)
4. Original Confirmation Letter from Financial Institution
5. Xerox Copy of Insurance
Paid Hypothecation Cancellation Charges of Rs. 250 and received the Receipt for the same. I was called the next day with the Receipt.

Third Visit to the RTO
I was asked to pay Rs 350 as Smart Card fees and was told that i will receive the RC Smart Card within 15 working days by post.