SC lifts ban on diesel cars and SUVs with engine capacity of 2,000cc

New Delhi, Aug 12 (KNN) In a big relief to the car manufacturers and auto component manufacturers, the Supreme Court on Friday has allowed the sale of diesel cars and SUVs with engine capacity of 2,000cc or more in Delhi and the national capital region (NCR) on payment of 1% ex-showroom cost as environment levy.

SC also asked the Central Pollution Control Board (CPCB) to open an account in public sector banks to receive green levy from big diesel car and SUV makers.

In its decision, the apex court said "The transport authority would register a big diesel car or SUV only if receipt of payment of green levy is shown."

“It will also decide whether the rate of green levy on big diesel cars be more than 1% of ex-showroom cost of the vehicle,” said SC.

Throwing lights on the issue of whether smaller diesel cars too should be brought under the purview of payment of environment levy, the court said that it would decide later about it.

The Supreme Court was hearing the plea of luxury car maker Mercedes-Benz which has offered to pay 1 per cent environment cess in a bid to overcome the ban on registration of vehicles with engine capacity of 2000 cc or more in Delhi and NCR.

The NGT had in December last year stopped the registration of new diesel heavy vehicles in the national capital. (KNN Bureau)