An application to transfer the registration or remove our hypothecation, without our no-objection certificate, means the vehicle may be about to be sold. Act the same day.
Why it is urgent
Our hypothecation on the RC is what lets us recover the vehicle if the loan fails. A borrower who applies to transfer the RC, or to remove the hypothecation, without our NOC is usually trying to sell the vehicle with the loan still running. Once a transfer goes through, recovering the vehicle takes months and sometimes a court order.
The EWS raises C6 (35 points) as soon as the request appears on Vahan. Combined with a cancelled mandate (R2), it is the most urgent pattern we see.
Same day
Do not issue a NOC. Tell operations to block any NOC request on the loan until the case is closed.
Write to the RTO where the application was made. State that the vehicle is hypothecated to us, give the loan reference, and ask that no transfer be processed without our NOC. Email and hand-deliver; keep the acknowledgement.
Field visit within 24 hours to locate the vehicle: the registered address, the usual yard or loading point, and the address on the transfer application if we have it.
Call the borrower, and the co-borrower and guarantor if the borrower is unreachable (KB-039).
Next
If the vehicle is found and the borrower agrees to keep paying, record the conversation and register a new mandate.
If the borrower intends to sell, offer a supervised sale: the buyer pays us directly, and we issue the NOC when the loan is closed.
If the vehicle cannot be found, escalate to the collections manager for a decision under KB-006, and inform the police only on legal's advice.
Record
Upload the RTO letter and its acknowledgement to the case. Note every attempt to locate the vehicle.