Key Compliances under Environment Protection (End-of-Life Vehicles) Rules, 2025

Background

Environment Protection (End-of-Life Vehicles) Rules, 2025 (ELV Rules, 2025) have been notified by the Ministry of Environment, Forest and Climate Change (MoEFCC) under the Environment (Protection) Act, 1986. These Rules establish India’s first comprehensive regulatory framework for the environmentally sound management of End-of-Life Vehicles (ELVs) — vehicles that have reached the end of their operational life and are required to be scrapped and processed in accordance with prescribed environmental standards.

ELV Rules introduce an Extended Producer Responsibility (EPR) framework that makes vehicle producers responsible for ensuring that a prescribed percentage of the steel contained in ELVs introduced by them in the market is recovered and recycled through Registered Vehicle Scrapping Facilities (RVSFs). The framework operates through a centralised online portal administered by the Central Pollution Control Board (CPCB), where all registrations, EPR declarations, annual and quarterly returns, EPR certificate generation, purchase, and adjustment transactions are recorded. The Rules are complementary to the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 and together create an integrated ELV management ecosystem in India.

Applicability

Environment Protection (End-of-Life Vehicles) Rules, 2025 apply to the following categories of entities:

Producers — entities engaged in the manufacture, assembly, or sale of vehicles under their own brand, or import of vehicles — who are subject to EPR obligations for scrapping of ELVs and must register with CPCB, file annual returns, declare EPR obligations, purchase EPR certificates, and maintain designated Collection Centres.

Registered Vehicle Scrapping Facilities (RVSFs) — establishments holding registration under the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 — required to register with State Pollution Control Boards, carry out environmentally sound scrapping, generate EPR certificates, and file quarterly returns.

Bulk Consumers — entities owning more than 100 vehicles, including State Transport Undertakings — required to register with State Pollution Control Boards, deposit ELVs within 180 days of their becoming ELVs, and file annual returns.

Collection Centres — facilities designated for the sole purpose of collecting, storing, and transferring ELVs to RVSFs — required to handle ELVs in an environmentally sound manner and maintain records of receipt, handling, and transfer.

Automated Testing Stations — required to upload details of vehicles declared unfit under CMVR, 1989 on the centralised online portal.

Registered owners of vehicles — who are required to deposit their ELVs at designated Collection Centres, sales outlets, or RVSFs within 180 days of the vehicle becoming an ELV.

Compliance Requirement Under the act in Accordance with the Rules & Regulations:

  1. Form 7 — Certificate of Registration of Producer (Rule 10(3))

Every producer shall obtain registration from the Central Pollution Control Board (CPCB) by filing Form 4 on the centralised online portal before undertaking activities covered under the Rules. ‘Producer’ means an entity engaged in: (i) manufacture or assembly and sale of vehicles under its own brand; (ii) sale of vehicles under its own brand produced by other manufacturers or suppliers; or (iii) import of vehicles. The Certificate of Registration is issued in Form 7.

  1. Form 5 — Certificate of Registration of Registered Vehicle Scrapping Facility (RVSF) (Rule 10(3))

Every Registered Vehicle Scrapping Facility shall obtain registration from the State Pollution Control Board by filing Form 5 on the centralised online portal before carrying out operations. A ‘Registered Vehicle Scrapping Facility’ means any establishment holding a Registration for Vehicle Scrapping issued under the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021, for carrying out dismantling and scrapping operations.

  1. Form 5 — Certificate of Registration of Bulk Consumer (Rule 10(3))

Every bulk consumer shall obtain registration from the State Pollution Control Board by filing Form 6 on the centralised online portal before carrying out activities covered under the Rules. ‘Bulk consumer’ means a consumer having ownership of more than one hundred vehicles, and includes a State transport undertaking as defined in clause (42) of Section 2 of the Motor Vehicles Act, 1988 — being any undertaking providing road transport service carried on by the Central Government, a State Government, a Road Transport Corporation, or a municipality or corporation owned or controlled by the Central or State Government.

  1. Achieve Annual EPR Scrapping Target for Non-Transport Vehicles (Rule 4(1)(i) | Schedule — Table (i))

Every producer introducing non-transport vehicles in the market shall achieve the prescribed annual Extended Producer Responsibility (EPR) target based on the specified percentage of steel used in vehicles reaching end-of-life, as per the applicable financial year targets set out in Table (i) of the Schedule. The producer may fulfil its EPR obligations either through EPR certificates generated by its own Registered Vehicle Scrapping Facility or by purchasing EPR certificates generated by any other entity holding a Registered Vehicle Scrapping Facility. EPR certificates generated by RVSFs shall be valid for a period of five years for meeting the producer’s obligations. Up to 30% of the EPR targets of any year may be carried forward to the subsequent four years for EPR target compliance purposes.

TARGETS FOR EXTENDED PRODUCER RESPONSIBILITY

Table (i) – For non-transport vehicles

Extended Producer Responsibility target for Financial Year

Extended Producer Responsibility target (Weight)

(1)

(2)

2025-26

Minimum 8% of the steel used in vehicles in 2005-06

2026-27

Minimum 8% of the steel used in vehicles in 2006-07

2027-28

Minimum 8% of the steel used in vehicles in 2007-08

2028-29

Minimum 8% of the steel used in vehicles in 2008-09

2029-30

Minimum 8% of the steel used in vehicles in 2009-10

2030-31

Minimum 13% of the steel used in vehicles in 2010-11

2031-32

Minimum 13% of the steel used in vehicles in 2011-12

2032-33

Minimum 13% of the steel used in vehicles in 2012-13

2033-34

Minimum 13% of the steel used in vehicles in 2013-14

2034-35

Minimum 13% of the steel used in vehicles in 2014-15

2035-36

Minimum 18% of the steel used in vehicles in 2015-16

2036-37

Minimum 18% of the steel used in vehicles in 2016-17

2037-38

Minimum 18% of the steel used in vehicles in 2017-18

2038-39

Minimum 18% of the steel used in vehicles in 2018-19

2039-40 and onwards

Minimum 18% of the steel used in vehicles in 2019-20 for 2039-40 and for subsequent years, of the steel used in vehicles 20 years ago

 Note: 30% of the Extended Producer Responsibility targets, of any year, may be carried forward to the subsequent four years for its Extended Producer Responsibility target compliance.

  1. Achieve Annual EPR Scrapping Target for Transport Vehicles (Rule 4(1)(i) | Schedule — Table (ii))

Every producer introducing transport vehicles in the market shall achieve the prescribed annual EPR target based on the specified percentage of steel used in vehicles reaching end-of-life, as per the applicable financial year targets set out in Table (ii) of the Schedule. The producer may fulfil EPR obligations through EPR certificates generated by its own RVSF or by purchasing EPR certificates from any entity holding an RVSF. EPR certificates are valid for five years. Up to 30% of the EPR targets of any year may be carried forward to the subsequent four years.

TARGETS FOR EXTENDED PRODUCER RESPONSIBILITY

Table (ii) – For transport vehicles

Extended Producer Responsibility target for Financial Year

Extended Producer Responsibility target (Weight)

(1)

(2)

2025-26

Min 8% of the steel used in vehicles in 2010-11

2026-27

Min 8% of the steel used in vehicles in 2011-12

2027-28

Min 8% of the steel used in vehicles in 2012-13

2028-29

Min 8% of the steel used in vehicles in 2013-14

2029-30

Min 8% of the steel used in vehicles in 2014-15

2030-31

Min 13% of the steel used in vehicles in 2015-16

2031-32

Min 13% of the steel used in vehicles in 2016-17

2032-33

Min 13% of the steel used in vehicles in 2017-18

2033-34

Min 13% of the steel used in vehicles in 2018-19

2034-35

Min 13% of the steel used in vehicles in 2019-20

2035-36

Min 18% of the steel used in vehicles in 2020-21

2036-37

Min 18% of the steel used in vehicles in 2021-22

2037-38

Min 18% of the steel used in vehicles in 2022-23

2038-39

Min 18% of the steel used in vehicles in 2023-24

2039-40 and onwards

Min 18% of the steel used in vehicles in 2024-25 for 2039-40 and for subsequent years, of the steel used in vehicles 15 years ago

Note: 30% of the Extended Producer Responsibility targets, of any year, may be carried forward to the subsequent four years for its Extended Producer Responsibility target compliance.

  1. Declaration of EPR Obligations for Current Year to Central Board by 30th April (Rule 4(1)(viii))

Every producer must declare its Extended Producer Responsibility (EPR) obligations for the current financial year to the Central Board (CPCB) on the centralised online portal by 30th April of that year. This obligation applies to producers, bulk consumers (who must furnish prescribed information regarding vehicle ownership and ELV disposal), and Registered Vehicle Scrapping Facilities (responsible for submitting quarterly returns relating to receipt, dismantling, recycling, refurbishment, and disposal activities).

  1. Form 1 — Annual Return by Producer by 30th June (Rule 4(1)(vii))

Every producer shall file an annual return in Form 1 by 30th June each year on the centralised online portal, covering vehicle-wise details of vehicles placed in the market — including self-use vehicles — and details of EPR obligation fulfilment for the previous financial year. Producers are responsible for filing Form 1 through the portal; bulk consumers are required to file Form 2; and Registered Vehicle Scrapping Facilities are required to file quarterly returns in Form 3.

  1. Intimation to Central Board of Changes in EPR Registration Information or Permanent Cessation (Rule 4(1)(ix))

Every producer must inform the Central Board (CPCB) through the centralised online portal of: (a) any changes to information contained in the EPR registration or EPR obligation; and (b) any permanent cessation as regards the making available on the market of the vehicles referred to in the EPR obligation. Prompt intimation is required to ensure that the CPCB portal reflects accurate and updated registration and obligation data at all times.

  1. Not Engaging with Unregistered Entities for ELV Scrapping or EPR Fulfilment (Rule 4(2))

A producer shall not engage in any manner with any entity not registered under the ELV Rules for scrapping of End-of-Life vehicles or for fulfilling its Extended Producer Responsibility. This prohibition applies to all forms of engagement — contractual, operational, financial, or otherwise — with unregistered scrapping facilities or intermediaries, whether for the purpose of ELV collection, scrapping, or EPR certificate procurement.

  1. Establish and Publicise ELV Collection Centres and Sales Outlets on Website and Portal (Rule 4(5))

Every producer must make necessary arrangements to receive End-of-Life vehicles from registered owners at designated Collection Centres, including its sales outlets. The producer shall upload the list of designated Collection Centres and sales outlets on its official website and display such details at conspicuous places at its sales outlets and service centres. The list of designated Collection Centres shall also be furnished to the Central Board on the centralised online portal.

  1. Fulfil Pending EPR Obligations upon Closure of Operations (Rule 4(6))

Every producer discontinuing or closing operations must continue to fulfil its Extended Producer Responsibility obligations for all vehicles already introduced in the market, until such obligations are fully discharged in accordance with the Rules. A producer that has ceased operations does not stand relieved of EPR obligations in respect of vehicles it had placed in the market prior to closure.

  1. Organisation of Awareness Campaigns at Collection Centres (Rule 4(7))

Every producer shall organise awareness campaigns and encourage customers — by offering incentives — to safely deposit End-of-Life vehicles at a Registered Vehicle Scrapping Facility or at designated Collection Centres. The objective of awareness campaigns is to promote voluntary and environmentally responsible ELV deposition by vehicle owners, reduce unauthorised scrapping, and facilitate achievement of EPR targets.

  1. Deposit of End-of-Life Vehicle at Designated Collection Centre, Sales Outlet or RVSF Within 180 Days (Rule 5(2), (3))

When a vehicle becomes an End-of-Life vehicle as per the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021, the registered owner or bulk consumer shall deposit the ELV at any of the producer’s designated sales outlets, designated Collection Centres, or Registered Vehicle Scrapping Facilities within 180 days from the date the vehicle becomes an ELV. No person shall keep in possession any End-of-Life vehicle beyond the prescribed 180-day period.

  1. Form 2 — Annual Return by Bulk Consumer by 30th June (Rule 5(5))

Every bulk consumer shall file an annual return in Form 2 by 30th June each year on the centralised online portal, covering details of: vehicles owned or possessed during the previous financial year; and End-of-Life vehicles deposited at designated sales outlets, Collection Centres, or Registered Vehicle Scrapping Facilities for scrapping during that year.

  1. Collect, Store and Transfer End-of-Life Vehicles to Registered Vehicle Scrapping Facility (Rule 6(1))

Every Collection Centre is required to collect and store End-of-Life vehicles and send them only to a Registered Vehicle Scrapping Facility for further processing and scrapping in accordance with the prescribed framework. A ‘Collection Centre’ means a facility or area used solely for collecting and storing End-of-Life vehicles and sending them for further processing at the scrapping yard. Collection Centres shall not carry out any scrapping, dismantling, or depollution activities.

  1. Ensure Environmentally Sound Handling of End-of-Life Vehicles at Collection Centres (Rule 6(2))

Every Collection Centre must handle End-of-Life vehicles in an environmentally sound manner before transferring them to a Registered Vehicle Scrapping Facility. Environmentally sound handling includes ensuring no release of hazardous fluids, preventing contamination, and storing vehicles in a manner that prevents leakage of fuel, oil, coolant, brake fluid, or battery acid onto the ground or into water bodies.

  1. Maintain Records of Receipt, Handling and Transfer of ELVs at Collection Centres (Rule 6(3))

Every Collection Centre must maintain accurate records of: (a) End-of-Life vehicles received at the Collection Centre; (b) ELVs handled (including any depollution or pre-treatment activities); and (c) ELVs sent to a Registered Vehicle Scrapping Facility. These records shall be maintained in the prescribed format and shall be made available to the State Pollution Control Board or designated authority upon inspection or demand.

  1. Upload Details of Unfit Vehicles on Centralised Portal by Automated Testing Station (Rule 7(1))

Every Automated Testing Station shall upload the details of all vehicles declared unfit under Rule 182 of the Central Motor Vehicles Rules, 1989, on the centralised online portal — either directly or through linking of the electronic portal set up by the Central Government under sub-rule (1) of Rule 181 of the CMVR. This enables real-time tracking of End-of-Life vehicles on the national portal and supports the producer’s EPR framework.

  1. Scrapping ELVs in Environmentally Sound Manner by Registered Vehicle Scrapping Facility (Rule 8(1), 8(2)(a)(b)(c))

Every Registered Vehicle Scrapping Facility shall receive unfit or End-of-Life vehicles for scrapping and carry out treatment, depollution, dismantling, segregation, and scrapping activities in accordance with the provisions of applicable laws. The RVSF shall: (a) send all recovered and segregated materials to registered recyclers, refurbishers, or co-processors for recycling and reuse; (b) send all non-recyclable or non-refurbishable materials and non-utilisable hazardous materials to a Common Hazardous Waste Treatment, Storage and Disposal Facility; and (c) ensure that all scrapping, dismantling, and depollution activities are carried out in a manner that prevents environmental contamination.

  1. Exchange of EPR Certificates on Centralised Online Portal on Processing of Every End-of-Life Vehicle (Rule 8(2)(d), Rule 9(10))

Every Registered Vehicle Scrapping Facility shall generate and exchange EPR certificates on the centralised online portal for each End-of-Life vehicle processed, based on the weight of steel generated from that vehicle. All purchase and adjustment transactions of EPR certificates shall be recorded on the portal by the RVSF and shall be included in its quarterly returns in Form 3. Producers may purchase these EPR certificates from the RVSF on the portal to offset their EPR obligations.

  1. Maintain Records of ELV Receipt, Waste Generation and Disposal (Rule 8(2)(e))

Every Registered Vehicle Scrapping Facility must maintain records of: (a) receipt of each End-of-Life vehicle, including its particulars and date of receipt; (b) weight of various types of waste materials generated from each ELV; and (c) weight of materials handed over to authorised recyclers, refurbishers, treatment facilities, and disposal facilities. These records shall be available for inspection by the State Pollution Control Board and designated authorities.

  1. Form 3 — Quarterly Return by Registered Vehicle Scrapping Facility by 30th Day After Each Quarter (Rule 8(3))

Every Registered Vehicle Scrapping Facility shall file a quarterly return in Form 3 by the 30th day following the end of each quarter (i.e., by 30th July, 30th October, 30th January, and 30th April), on the centralised online portal. The return shall cover: ELVs received during the quarter; category-wise materials recycled, refurbished, or sent for processing; EPR certificates generated and transacted; and any other particulars specified in Form 3. The RVSF shall maintain related records in support of the return.

  1. Purchase of EPR Certificates Within Eligible EPR Obligation of Current and Preceding Years (Rule 9(5), (8), (9))

Every producer must: (a) purchase EPR certificates only up to the limit of the current year’s EPR obligation plus any leftover obligation from preceding years for which EPR targets remain unmet; (b) not re-exchange or re-use any EPR certificate that has already been adjusted or used against its EPR obligations — such certificates shall be treated as consumed; and (c) not transfer any purchased EPR certificate to any other producer. EPR certificates are non-transferable between producers.

  1. Ensure Utilisation of EPR Certificates Within Validity Period of Five Years (Rule 9(5), (8), (9))

Producers shall ensure that all Extended Producer Responsibility (EPR) certificates are utilised within their prescribed validity period of five years from the date of generation. EPR certificates not utilised within the validity period shall lapse and shall not be available for set-off against any current or future EPR obligation. Up to 30% of annual EPR targets may be carried forward to the subsequent four years, but carried-forward obligations must also be covered by valid certificates.

  1. Appeal Against Suspension or Cancellation of Producer Registration to Central Government (Rule 10(6))

A producer aggrieved by the suspension or cancellation of its registration by the Central Pollution Control Board may file an appeal before the Central Government within forty-five days from the date of the suspension or cancellation order. The appeal shall be filed in the prescribed format, stating the grounds of appeal and accompanied by a copy of the order being appealed against.

  1. Appeal Against Suspension or Cancellation of RVSF or Bulk Consumer Registration to State Government (Rule 10(9), (8))

Any Registered Vehicle Scrapping Facility or bulk consumer aggrieved by the suspension or cancellation of its registration by the State Pollution Control Board must file an appeal to the State Government within 45 days from the date of the order. The appeal shall state the grounds of appeal and be accompanied by a copy of the suspension or cancellation order. The State Government shall hear and dispose of the appeal as prescribed.

Penalty & Consequences

The following penalty provisions apply across the compliance obligations covered in this blog. These have been consolidated and de-duplicated for ease of reference:

Rule 10(5) — Suspension or Cancellation of Registration

In case of violation or non-compliance with any provision of the Environment Protection (End-of-Life Vehicles) Rules, 2025, the Central Pollution Control Board (for producers) or the State Pollution Control Board (for RVSFs and bulk consumers) may, after giving the registered entity an opportunity of being heard, suspend or cancel the registration granted under these Rules. Suspension or cancellation may be ordered for continued non-compliance, false declarations, failure to file returns, or failure to achieve EPR targets within prescribed timelines.

Rule 15 — Environmental Compensation for Non-Compliance Causing Loss or Damage

Where any producer, Registered Vehicle Scrapping Facility, or bulk consumer fails to comply with the provisions relating to handling and scrapping of End-of-Life vehicles in an environmentally sound manner under these Rules, thereby causing loss, damage, or injury to the environment or public health, they shall be liable to pay environmental compensation which may be equal to the loss, damage, or injury so caused, in accordance with the guidelines issued by the Central Board.

Section 15 of the Environment (Protection) Act, 1986 — General Criminal Penalty for Contravention

Whoever fails to comply with or contravenes any provision of the Environment (Protection) Act, 1986 or any rule, order, or direction made thereunder — including the Environment Protection (End-of-Life Vehicles) Rules, 2025 — shall be punishable with imprisonment for a term which may extend to five years, or with fine which may extend to one lakh rupees, or with both. In case of a continuing contravention, a further fine of up to five thousand rupees for each day after the first day during which the contravention continues shall be imposed. If the contravention continues beyond one year from the date of conviction, the imprisonment may extend to seven years.

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