Supreme Court Open To Lifting Delhi Diesel Ban, Proposes Environment Cess

The Supreme Court (SC) has stated that it is open to lifting the ban on the sale of diesel cars and SUVs with engines larger than 2,000cc in the Delhi NCR region.

However, the apex court said the lifting of the ban would be subject to a levy of one-time environment compensation cess.

The Supreme Court bench comprising Chief Justice T S Thakur and Justices A K Sikri and R Banumathi said, "We are inclined to allow registration. We are open to the registration subject to some kind of one-time cess."

The SC bench asked the automakers who had appealed the ban, to explore details about the green cess to be levied at the time of registration of diesel cars and SUVs.

The three-judge bench said, "Can you (lawyers for auto firms) ask your people to work out details as to what may be the cess to be levied on such vehicles with regard to the showroom price etc."

The automakers have stated that they will bring a concrete proposal to the court after working out the amount of cess to be levied.

The Supreme Court had banned the sale and registration of all diesel-powered cars and SUVs that had engines larger than 2,000cc on December 16, 2015. The ban was first imposed till March 31, 2016, but this was later extended by the court.