New Delhi, July 5 (KNN) The Supreme Court on Monday indicated lifting the six-month-old ban on registration of SUVs and diesel vehicles with engine capacity above 2000 cc in Delhi-NCR region. This ban could be lifted only if the manufacturers voluntarily agreed to pay one time environment compensation cess of one per cent on the showroom value of the vehicles.

Considering the fact that the automobile industry in the country, being the fifth largest sector receiving Foreign Direct Investment, is now facing obstacles due to the ban thus impacting Make in India initiative, the ban is likely to be evoked by the apex court.

SC’s plan to lift the same is welcomed by the MSMEs who are the main suppliers to the auto manufacturers.

Talking to KNN, Lalit Sabharwal, Director Diesel Auto Parts Co. Pvt. Ltd. said, “The ban already had its adverse repercussions on the manufacturing and sales of diesel auto parts and lifting the ban is perhaps a positive sign for both the big players like GM, Mahindra, Toyota and the MSMEs engaged in the manufacturing of the small parts that go into the making of diesel vehicles”.

A three-judge Bench of Chief Justice T.S. Thakur ,  Justices A.K. Sikri and R. Banumathi accepted the plea made by senior counsel Gopal Subramanium , Mohan Parasaran, Vishwanath Shetty, Gopal Jain, Abhishek Singhvi  and others, appearing for Mercedes and Toyota for voluntarily paying the one per cent cess in return  for allowing   diesel car registrations.

“We may ask (automakers/dealers/buyers) to pay one per cent of the cost of the vehicle as cess on diesel vehicle and it could be deposited with the Central Pollution Control Board or with any other body… we will make some arrangement for the time being,” said the bench, also comprising Justice A K Sikri and Justice R Banumathi.

Appearing for Mercedes, Mahindra, General Motors and Toyota car manufacturers, senior counsel Gopal Subramanium and Gopal Jain, urged the court to reconsider lifting the ban and said they were willing to pay a one-time cess. (KNN/ GK)