Form 35 for Hypothecation Removal: What It Is, How to Fill It, Who Signs It

Form 35 is the official prescribed form under the Central Motor Vehicles Rules, 1989 (Rule 61). Its full title is 'Notice of Termination of Agreement of Hire Purchase/Lease/Hypothecation'. When a vehicle is financed, the financier (bank or NBFC) is recorded on the RC as having a hypothecation charge. Form 35 is the document by which the financier formally notifies the RTO that the financing agreement has been terminated - meaning the loan is paid off and the bank relinquishes its lien on the vehicle.

Without Form 35, the RTO cannot process the removal of hypothecation from the RC, even if you have a full set of loan closure documents. Form 35 is one of the two required documents (the other being the bank's NOC letter) that must be submitted to the RTO together for hypothecation removal.

You can download a blank Form 35 from the official parivahan.gov.in website (MV Forms section) or from your state's transport department website. However, in practice, most banks and NBFCs issue a pre-filled Form 35 as part of the loan closure document set - and this is the preferred option because it ensures accuracy.

When you request NOC from the bank after loan closure, explicitly ask for Form 35 as well. Most competent bank loan officers know to include it. Some banks call it by its full name, others just say 'the RTO form' or 'the hypothecation removal form'. If the bank only gives you the NOC letter but not Form 35, specifically request Form 35 - or download the blank form from parivahan.gov.in and ask the bank's authorised officer to fill and sign it.

• Download blank Form 35: parivahan.gov.in → Forms → Form 35 (or state transport website)
• Pre-filled Form 35 from bank: request along with NOC when applying for loan closure documents
• Some bank portals (HDFC iMobile, ICICI, Axis) allow you to download a digitally signed Form 35 online
• Physical form (printed): must be typed or clearly handwritten - no overwriting or corrections

Form 35 has two sections. Part I is filled by the vehicle owner (the borrower/hypothecator). Part II is filled by the financier (bank/NBFC). For pre-filled forms from the bank, both parts may already be completed - review carefully before submitting.

Part I fields: Registration mark of the vehicle (e.g., MH-12-AB-1234), name and address of the owner, description of the vehicle (make, model), chassis number, engine number, type of agreement (hire purchase/lease/hypothecation - for car loans it is 'hypothecation'), name of the financier (bank name as it appears on the RC), and date of agreement (loan sanction date).

Part II fields: Name and address of the financier (bank), statement that the agreement has been terminated (loan paid off), date of termination (date loan account was closed), and signature of an authorised person on behalf of the financier.

• Use the exact registration mark as on the RC - do not abbreviate (e.g., MH-12-AB-1234, not MH12AB1234)
• Chassis number: copy exactly from RC - 17-character VIN for most modern vehicles
• Engine number: copy exactly from RC - varies in length by manufacturer
• Financier name: must match exactly as printed on the existing RC
• Date of termination: the date the bank confirms loan account closure (not last EMI date)

This is the most common point of confusion and rejection. Form 35 must be signed by an 'authorised person' on behalf of the financier - not just any bank employee or even any branch employee. The signatory must have specific authorisation from the bank to sign RTO-related documents and execute hypothecation terminations.

Different banks have different approaches. Major private banks like HDFC Bank and ICICI Bank designate specific officers (typically at the branch manager or area operations manager level) with standing authority to sign Form 35. PSU banks may require the branch manager's signature along with an official bank seal/stamp.

The key issue: sometimes banks send Form 35 signed by a loan officer or customer service executive who does not have the authorised signatory status. RTOs increasingly check this, and some RTOs cross-verify with the bank's authorised signatory list. If the RTO rejects Form 35 due to unauthorised signatory, go back to the bank and request the document signed by the correct officer.

Once you have a correctly filled and properly signed Form 35 along with the bank's NOC letter, you can submit both to your local RTO. In states with Vahan 4.0 integration, online submission is available - scan both documents and upload them through parivahan.gov.in under 'Removal of Hypothecation'.

For physical submission, carry: original Form 35 (bank's signed copy), original bank NOC letter, original RC, identity proof, and application fee (₹200–350 for RC update + ₹200 smart card fee). The RTO processes the request, updates the Vahan database to remove the financier entry, and issues a new RC smart card showing no hypothecation.

Processing time varies: well-digitised RTOs (most metros) process in 7–15 working days. Smaller RTOs may take 20–30 working days. You can track the application status online via parivahan.gov.in using your application reference number.