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-   -   ARTICLE: RTO Hypothecation Removal Process - Step by Step Guide (https://www.team-bhp.com/forum/owning-car/76237-article-rto-hypothecation-removal-process-step-step-guide-29.html)

Yes Bangalore East RTO has moved from Indira Nagar to Kasturi Nagar.

Yes, it is on the Rammurthy Nagar side of Kasturi Nagar (other side of Outer Ring Road) - go via the Kempegowda underpass and it is almost right behind Rammurthy Nagar Police Station.

Hello All,

I pre-closed my car loan about a year back, i have collected the documents mentioning that the loan is closed etc. but haven't submitted the documents to the RTO, The RC card (KA-01) and my insurance papers does not have any hypothecation details mentioned on them.

1. If the card and Insurance copy does not have any details, is it still mandatory to get it removed?

2. Would there be any issues, when i would sell the car, say 5 years down the line?

It is probably in the RTO computer even if it is not printed on the card. Remove the hypothecation anyway.

The NOC and Form-35 which you get while pre-closing the loan, needs to submitted in the RTO for hypothecation removal, within 90 days of being issues. This is what I was told by the branch manager when my loan was closed.

Insurance is got nothing to do here. If you have closed your car loan, you have to take out the hypothecation from the RC within 3 months. If you don't, you can still keep driving legally however while selling, especially in another RTO area, you will not get NOC.
If you don't do it now and sell the vehicle later, the new owner will ask for the papers and this hypothecation will be an issue. At that time also you can take the relevant papers from your bank, but it all depends who the bank manager is, how your relations are with the bank and how many times you many have to run around.
Best option is to do it now.

Slightly off topic, but I read the same thing on another thread that RC does not have Hypothecation information.

That's a very risky situation if someone buys a pre-owned car but RC doesn't have Hypothecation mentioned. What if one buys such car and loan in not fully paid by the first owner?

Any foolproof system to check Hypothecation information even if it is not mentioned on RC?

It will not be on the insurance document and also not printed on the RC card of the vehicle, but hypothecation is updated in the RTO records and in case of sale of vehicle, transfer will not be possible until the hypothecation is removed.

That is a risk which exists for the buyer. If I am right, the B register extract would contain the hypothecation details and the buyer should be able to get a B register extract from the RTO itself or from Bangalore One centers (at Bangalore).

KK

I received the same old RC card back from the Kasturi Nagar RTO. I thought they will give a new one.

I again tried to apply HPT in parivahan.gov.in just for testing, and as expected its not allowing now. So indeed the hypothecation details were removed from my RC.

They don't give you a new rc card

Did they include a copy of the changed B extract? If not you can get a printout at any Bangalore One centre.

Does anyone know a good / trusted RTO agent in Tirunelveli? A friend has bought a TN72 car whose hypothecation needs to be removed before transfer of ownership can take place. Please PM me by EOD, I will be in and around Tirunelveli over the next 4 days.

I had submitted the application for Hypothecation Termination at the Bangalore East (KA03) RTO, Kasturi Nagar on 27th Mar. On checking the Parivahan website, status of the application is now "COMPLETED / APPROVED" on 25th Apr. Other columns in the status record displayed are blank (like "RC Print / SMART CARD STATUS" and "DISPATCH RC STATUS").

I still haven't received the RC Smart Card by Speed Post (had also submitted a self-addressed stamped envelope for the same along with the application). What next ? Visit the RTO again or just wait for a few more days ?

*Since the RC was already a Smart Card, I don't think a new one will even need to be printed, the data in the old card just needs to be updated to remove hypothecation information and the card dispatched, so wondering why it takes so long ?

Couple days ago, I received the vehicle's RC Smart Card by speed post in the envelope that I'd submitted along with the application for Hypothecation Termination. At the time of submission I was told it would take about a month and it took about 2 weeks more than that, just need to be patient I guess :)

*Using the "Application Number" on your fee payment receipt, one can track the status on the Parivahan site as I'd mentioned in the quoted post above.

The above quoted post has the complete process to be followed for Hypothecation Termination (my local RTO is Bangalore East@Kasturi Nagar).

Total time taken to receive the RC Smart Card = 6 weeks

Hope this helps others.

Finally even I submitted my application last Saturday. They have given time of June 2nd week for receipt of RC card. That's about 6 weeks as you have mentioned :thumbs up.

KK

Recently applied for hypothecation termination at the Thane RTO. It is 2 day process here.



You need the following documents:


Day 1

• Hypothecation termination form (Available at the gate of the RTO @ ₹ 2 each)
• Not wanted report print out (counter # 7)
• No Objection Certificate (RTO copy)
• Form 35 (Both the copies, duly signed by yourself)

You need to take all the above mentioned documents to the counter # 51 (if closed, visit counter # 48), get the hypothecation termination (both) form signed by the counter staff, approach the dispatch clerk & get one of the form stamped with an outward number.



You may now proceed to your loan service centre branch, apply for hypothecation termination confirmation letter. The bank would issue this letter within half an hour on production of a government ID by the applicant.


Day 2

Arrange the documents in the following order and proceed to counter # 51 (# 48 if 51 closed)

• Hypothecation termination form with RTO outward number
• Bank's confirmation letter with above outward number
• Not wanted report printout (Counter # 7)
• Registration certificate - Original
• Driving License - Copy only
• Insurance policy - Copy only
• PUC - Copy only
• Owner's PAN card - Copy only
• Owner's Aadhaar card - Copy only
• Printout of payment receipt for ₹ 250 in duplicate (no payment accepted at the RTO)

The counter staff would verify all the documents, issue another form which the applicant needs to complete, paste a photograph and submit it along with all the above mentioned documents to the staff at counter # 51. The staff would then hand over a register where one needs to enter mobile phone number, email address, sign it and hand it over again to the counter staff. The counter staff would stamp, sign the duplicate copy of the payment receipt and hand it over back to the applicant. The applicant needs to wait for the next 45 days to receive RC smart card at his/her address mentioned on the Aadhar card.