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Transfer of previously hypothecated bike.. Headache

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Guys any idea about transferring a used bike that was earlier under hypothecation?

My bike was hypothecated earlier by the first owner, which was cleared and so the bank gave noc and form 35.

But here at the KR Puram rto they're saying that the chip in the rc still has the hypothecation and that it can only be cancelled at Indiranagar, where the rc was issued initially. Only then can they transfer it. Is this true? I feel they're asking me to run around pointlessly, wasting time and money.

Could you help me a bit with this?

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