SC lifts diesel ban in Delhi-NCR but imposes 1% environment compensation

Acting on a petition submitted by Mercedes-Benz India on Monday seeking removal of the diesel ban, the Supreme Court on Friday directed that all manufacturers, dealers or buyers have to deposit 1 percent environment compensation cost on purchase.

Supreme Court of India. AFP

As per the apex court order, registration of diesel vehicles of 2000 CC and above will be permitted in Delhi-NCR on deposit of 1 percent of ex-showroom price as green cess.

The Supreme Court said it will decide later whether green cess can be levied on diesel vehicles of below 2000cc engine capacity. It also asked Central Pollution Control Board to open a separate account in a PSU bank where the one percent green cess will be deposited.

A story published in Overdrive, a sister concern of Firstpost had said, "The company’s sales took a big hit after cars with diesel engine over 2,000cc were banned in Delhi-NCR. All Mercedes-Benz diesel engines are above that bracket. Given the fact that Delhi-NCR is an important market, the company is reeling under a lot of pressure. It also announced recently that all its cars will be available with a petrol engine option by September 2016."

In July, the National Green Tribunal (NGT) had banned diesel vehicles which have been registered more than 10 years ago in the National Capital Region.

Diesel vehicles, which are 15 years old should be deregistered first and will not get NoC for plying outside Delhi-NCR, the NGT had said in its order.

The NGT order also made it clear that only deregistered diesel vehicles, which are less than 15 years old can get a No Objection Certificate (NoC) for plying in select areas outside Delhi-NCR to be decided by states where vehicle density is less.

"All diesel vehicles which are more than 15 years old and are BS-I, BS-II to be scrapped and no NOC will be issued," a bench headed by justice Swatanter Kumar said as it clarified its earlier order directing the Delhi government to cancel the registration of all diesel-powered vehicles which are more than 10 years old from plying in the National Capital Region.

With inputs from PTI