Hypothecation / Removal of Hypothecation

Briefly.... As per the terms & conditions of the loan and the agreement papers/documents executed, the borrower is liable to get the hypothecation lien registered in the RTO & the Insurance Company.  Therefore, in order to avoid any complication/s that may arise in case of some eventuality, it is prudent to abide by the agreed terms & conditions of the loan.

Nevertheless, it is more in the interest of the lender/bank to ensure that the same fall in place immediately on registration.

@Pankaj,

Is there a way to check the detials of a car in any website with the registration number. All information about the car from Motor Vehicles?

Also any information of the Hypothecation of the car through any website.

I am planning a used car and need the detials before taking it.

Thanks,

Ranadeep.

Which city/state you are in?

This site can help for Delhi.

@ Pankaj,

Sorry for opening this old thread again, but I was just getting my car re insured after the first year and the insurance guy pointed out that the RC Smart card didnt have any details of hypothecation. However my insurance certificate does have the banks name under hypothecaton.

Anyways, I have read the entire thread. My question is:

I am anyways thinking of paying back the banks loan this year and as it is a government bank, which does everything very slowly, I dont want to get into this hypothecation mess with them. In this scenario, since I am going to repay the loan in full this year, is it worth getting the hypothecation done on the RC smart card, or is it better to just pay back the loan and then start the removal of hypothecation procedures? Also while removal of hypothecation, will I need to issue a duplicate RC smart card, as the original itself does not have anything under the hypothecation clause.

Also, since the car is just a year old, will the dealer help out with these formalities?

Hi Guys,

No response from anyone on this!!! Can someone help out with this please?

I had a problem when transfering the ownership of car. Person who sold the car submitted the appropriate documents to remove hypothecation. I have availed loan from the same bank from which the previous owner availed. RTO people are asking me 'Form 17' to continue the hypothecation. Bank people gave me letter. However RTO people says in addition to that there must be Form 17 to complete the process.

Please help by guiding in this regard.