
According to sources, many vehicle owners have filed complaints claiming they were not paid the scrap value for their impounded vehicles, despite government directives mandating such compensation. The inquiry will also examine whether some of these vehicles were illegally transported to other states.
Sirsa said the investigation would look into possible lapses, mismanagement and irregularities in the entire disposal process.
The sources said there were also complaints about overcharging, such as towing, handling and logistics fees, even in cases where the department had issued release orders specifying that charges must align with Delhi Parking Rules, 2019.
Other aspects under scrutiny include delays in issuing the Certificate of Deposit (COD) to vehicle owners and reports of owners being denied access to retrieve valuables from their vehicles at scrap yards. According to official figures, 39,273 vehicles were scrapped in 2024 and 22,397 in 2023. The Transport Department had launched a large-scale drive in March 2023 to impound end-of-life vehicles - those older than 15 years (petrol) and 10 years (diesel). However, the department had initially not provided a mechanism for the release of impounded vehicles.
Former minister Kailash Gahlot had objected, calling the drive "invasive" and lacking proper government clearance. He wrote to the department urging a halt, leading to a pause.
The campaign resumed later following a directive from the Commission for Air Quality Management (CAQM) to take action against such vehicles parked or driven in public spaces.
The matter eventually reached the Delhi High Court, which allowed vehicle owners to reclaim their impounded vehicles under the condition that they would not operate them in Delhi-NCR and would either store them privately or shift them out of the region.