SC lifts diesel ban, carmakers to pay 1% green levy

The Supreme Court today allowed registration of diesel cars with engine capacity of 2000 CC and above in Delhi and the national capital region. The condition is that auto makers will have to deposit a one percent green cess on the ex-showroom price of cars.

The Supreme Court today allowed registration of diesel cars with engine capacity of 2000 cc and above, in Delhi and the national capital region. The condition is that auto makers will have to deposit a one percent green cess on the ex-showroom price of cars.

The Supreme Court building. (HT Archive)

This decision from the apex court came after Mercedes earlier this week had appealed for lifting the diesel ban and had proposed to pay a one percent environment levy.

The Supreme Court had in December last year banned the sale of diesel vehicles with an engine capacity of 2,000cc or more in Delhi — which is said to have the worst air quality among major capitals in the world — and its adjoining areas.

The ban was to remain in place for three months but was extended indefinitely.

Major car manufacturers and the Centre had sought relaxation from the Supreme Court, which on July 4 reserved its order, indicating that such vehicles may be allowed to be registered again on payment of 1% of the ex-showroom price as environmental cess.