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Exception for Diesel Vehicle in Delhi

In a relief to car manufacturers, the Supreme Court lifted a ban on the registration of large diesel cars across the national capital region on Friday, but on a condition.

The condition is that all auto manufacturers, dealers or buyers will have to deposit one percent of ex-showroom price of the affected vehicles as environment cess. The SC also asked the Central Pollution Control Board to open an account in public sector banks to receive green levy from big diesel car and SUV makers.

The decision came after auto makers such as Mercedes-Benz and Toyota offered to pay the 1% environment protection charge. The ban on the registration of diesel engines displacing 2 litres and more was imposed on December 11, last year as a means to reduce air pollution in the capital.

However, a bench headed by Chief Justice T S Thakur left open for adjudication Centre’s opposition that such charge cannot be levied by the court.

The court is also yet to decide whether such a charge will be levied on diesel vehicles of engine capacity below 2 litres and if the rate of the charge will be increased.

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