Supreme Court lifts diesel ban in Delhi-NCR

Ban on registration of 2,000cc or above engine capacity diesel vehicles lifted by the Supreme Court. Car manufacturers will have to pay 1 per cent 'green cess' to register vehicles though.

After a long hiatus, the Supreme Court has finally lifted the ban on the registration of diesel vehicles above 2,000cc engine capacity in Delhi-NCR. There’s no doubt that this piece of news will allow the affected car manufacturers to heave a sigh of relief, but there's a catch. As per the apex court, to register diesel cars with 2.0-litre or above engine capacity in Delhi-NCR, a green cess of 1 per cent of the ex-showroom price of the vehicle will have to be deposited. Reportedly, the Supreme Court is also thinking to levy green cess on small capacity diesel vehicles.

The Supreme Court’s decision to lift the diesel ban came right after Mercedes-Benz filed a plea against the order. In its proposal, the German luxury car manufacturer reportedly offered to pay 1 per cent environment cess in order to register diesel cars with 2,000cc or more engine capacity.

Before today’s hearing, though, the court itself had proposed the manufacturers/dealers/buyers to pay a one-time environment fees to register large capacity diesel vehicles in Delhi-NCR. Having said that, it’s understood that the court took other important factors into consideration as well. Thus far, there has not been any concrete proof that large capacity and modern diesel-fueled vehicles are ‘dirty’ or are more polluting than, say, old and badly maintained vehicles plying on the capital’s roads.

Commenting on the development, Dr Pawan Goenka, Executive Director, Mahindra & Mahindra, said, “We are very relieved with the decision of the Honourable Supreme Court today. Hope this decision will put all controversy surrounding diesel fuel behind us and we will be able to focus on the more important task of making our vehicles compliant with BS 6 norms by April 2020”.

Mahindra, however, was not the only manufacturer which suffered from the diesel ban that came into effect from January 2016. Sales of Mercedes-Benz, Tata, Toyota, etc., were also hit badly by the diesel ban.

Also read: Mercedes-Benz India files plea to lift diesel ban