Vehicle sold in scrap - how to remove liability

You can submit a letter stating the facts to the RTO of your district with a copy of your license and request him to cancel the license.  Try the website of rto.govt.state.in.

The registration certificate of a vehicle is cancelled under Section 54 of the Motor Vehicles Act 1988. You have to apply on plain paper for cancellation to the RTO under whose jurisdiction you live, giving facts of the case. Preferably give the application with a photocopy of the registration certificate. Also give it personally under acknowledgement or send it by Registered AD. If the receiving RTO is not the original RTO who registered the vehicle, they will forward it to the original RTO. The original RTO will cancel the registration and send you an intimation asking you to surrender the original certificate. You surrender the certificate.