Hypothecation / Removal of Hypothecation

Hi ,

My bike was financed by BAFL (Bajaj finance). And I cleared the EMI on Feb 2006. they gave me the papers , but till date I have not gone to the DTO office for the removal of Hypothetication. Is there any problem if I approach them now. I heard that the document expires after few months. Do i need to ask BAFL for the same once again? Also I have not renewed my Insurance last year. Is there any problem.

Aftab

  

The No Due Certificate does not have an expiry date - so it's valid.  The RTO should not insist for the same of a recent date.  However, if it does, BAFL should not have any problem in issuing a fresh one.

Any un-insured vehicle is illegal, and therefore, in case of some eventuality/accident (God forbid) or theft etc., you will have a tough time.  Please get it insured (afresh; renewal not possible) immediately without loss of further time.

Honesty is not a Spare Wheel that you pull out when in trouble. It's a Steering Wheel that keeps you on the right path throughout the life's journey.

Sorry... the info provided above by me on validty of NDC (No Due Certificate) is incorrect.  Though NDC does not have an expiry date, like stated before, RTO does not accept it if it is older than 3 months.  Therefore (like in your case), a fresh NDC will have to be obtianed from BAFL - they may charge a nominal fee for issuing the same (some lenders charge some don't).

Honesty is not a Spare Wheel that you pull out when in trouble. It's a Steering Wheel that keeps you on the right path throughout the life's journey.

after getting the NOC what will be the process like....

.... submitting it to RTO & getting the hypothecation lien removed from their records & RC Book.


Honesty is not a Spare Wheel that you pull out when in trouble. It's a Steering Wheel that keeps you on the right path throughout the life's journey.

@ Pankaj, I have not deposited copy of RC book in HDFC bank through which my Spark is financed. I would like to tell you that somehow (dont know who is responsible), my Spark is not hypothicated. It should be though but not on my RC book. The executive from HDFC came and checked and told me that why hypothecation is not mentioned, I replied I dont know, he said you should go to the RTO for correction and in reply I told him I am not going anywhere, I dont have time and this is not my mistake. This is not the first car I bought and I never went to RTO, if its not hypothecated than this is a mistake from your end.

 

Any comment or suggession?

People dont change when you tell them that there is a Better option... They change when they realise that there is No Other Option..

Actually, the hypothecation lien should have been endorsed at the time of registration itself.  In your case, inadvertently either the dealer did not mention it in the registration form OR the RTO missed to notice it while registering.

 

In any case, it should definitely be endorsed in the RTO records as well as in the RC Book.  I’m surprised as to how your financer (HDFC) hasn’t insisted upon it.  In fact, this must have transpired in their concurrent & other audits & they need to rectify & confirm to their controlling authority as well as audit department.  Anyway!

 

Getting it endorsed now is not a big deal at all.  You & your financer only need to fill-up a small requisite form, duly signed & stamped/sealed by the bank, and submit it with the RC Book (original) to the RTO.  It can be done through your bank or even directly or through an agent.  No fees is required to be paid for this (expect agent fees – if routed through him).  You can conveniently request your bank to arrange for it – they should be too happy to do it (rectify the irregularity).

 

By the way, check if your Insurance Policy, which you may have deposited with HDFC, contains the Bank Clause/Lien.  If not, in fact, bank should have pointed out this too.  Anyway, ensure this aspect too.

 

And you need to deposit an attested photocopy of the RC Book & original Insurance Policy (you may retain photocopy) with your bank.

Honesty is not a Spare Wheel that you pull out when in trouble. It's a Steering Wheel that keeps you on the right path throughout the life's journey.

Thanks for info Pankaj, actually I was also amazed how they missed this thing? I received 3-4 calls and couple of sms only from HDFC regarding the copy of RC book.

 

The executive (who was looking after my case) phoned me twice only, I guess these guys are too busy, they dont have time really. Anyways, I dont think this is my problem... I made a call 10-15 days back to the executive of HDFC, I told him to do the needful and still waiting to hear from his side.

People dont change when you tell them that there is a Better option... They change when they realise that there is No Other Option..

Same thing happened with me Rajiv. I also took a loan from HDFC and these guys simply did not botehr to get allt eh details initially. alter ont hey were smsing me to submit the copy or RC and  Insurance. finally I got a distress call from the guy who did my loan processing to please submit the same as he was under the firing line. I am not sure of the hypothecation clause, wll check my RC and Insurace papers carefully for it.

By the way Pankaj, I still did not get your point. If it has been missed in the RC, why should the owner be bothered about it? What are the potential risks do we face if the vehicle is not hypothicated?

I feel the bank is at risk as the vehicle shd be hypothecated when taken on loan. You can sell the vehicle presently without telling the buyer as it is in your name. If it is hypothecated then the buyer will know it is financed. Better check insurance. There would be some problems if you claim insurance !