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The bench also directed the Aam Aadmi Party (AAP) government to hold a meeting with the neighbouring states on the issue of identifying land pockets to be used for impounding four wheelers.
"Vehicle which are already impounded from many years and are in scraped conditions must be removed with immediate effect from Delhi," the NGT said.
The government had also faced a barrage of searching questions on the alarming air pollution levels.
The bench expressed its displeasure that its earlier order banning 10 years old diesel vehicles was not being seriously executed and hoards of them were still visible on the roads with the traffic police doing nothing in the matter.