Diesel engine ban: SC order clears paths for registration of small cars

Higher pollution tax for less than 2000cc diesel vehicles to be decided on Jan 5

The Supreme Court order on Wednesday not only banned registration of diesel vehicles with engine capacity of over 2000cc until March 31, 2016, it also cleared the air on registration of smaller diesel vehicles.

Recently, the National Green Tribunal ordered a ban on the registration of all diesel cars in Delhi. The green court had also asked the government to stop buying diesel cars in the national capital. The NGT was to review these provisional orders on January 6, 2016. But now that the Supreme Court order is out, NGT's earlier directions have been overruled. The Bench of the apex court clarified it in as many words: "notwithstanding any order to the contrary passed by any court or authority or Tribunal whatsoever."

However, buyers of small diesel cars will have to pay higher pollution tax from next year. The quantum of such pollution tax is likely to be decided at the Supreme Court's next hearing on January 5, 2016.

Automobile industry has welcomed the clarity and registration of small diesel vehicles is likely to resume on Friday. "Registrations would now happen as the Supreme Court's verdict is above all other verdicts," said top executive of an automobile company.

Registration of diesel vehicles with less than 2000cc engines couldn't take place on Thursday because of a technical glitch. The NGT's December 11 order stopping the registration of new diesel cars in Delhi is no longer applicable. Dealers had approached the tribunal seeking modification of the order so that they could clear the inventory of cars manufactured in 2015, said Pinaki Mishra, legal counsel of the auto dealers. "The SC ban is not applicable to vehicles less than 2000cc, which can be registered," Mishra said.

Legal experts advising auto dealers said since the SC ban on big diesel vehicles was effective immediately, the registration of smaller vehicles should also resume at the same time. An official at Gautam Budh Nagar Regional Transport Office (RTO) said his office was waiting to receive a copy of the order before going ahead with new registrations. Gurmeet Singh Anand, managing director of AMP Motors, which deals in luxury car brands like Jaguar, Land Rover, Ducati and Maserati, said there is lack of clarity on the date from which the order is effective. The ban will saddle dealers of luxury cars such as Mercedes, SUV-maker Mahindra & Mahindra and Toyota as no sale can be done in till March.