"It is killing us," a bench of justices Badar Durrez Ahmed and Ashutosh Kumar said, adding that the grave situation was leading to the "decimation" of more than 60 million life years or one million deaths.
It also asked whether votes were more important than the lives of those who vote.
"It is literally capital punishment as the capital is being punished and that too for no offence. People are being killed in the capital. You cannot kill Delhi," the high court said, terming reduction in life expectancy due to pollution and government inaction over it as "genocide" and "murder".
The bench also noted that Delhi had the highest number of people suffering from respiratory ailments and also deaths due to it.
It said the government was duty bound to remove the threat of air pollution, but "despite repeated direction" and public opinion, the "governments responsible have not acted in the manner they should have".
"With an average life expectancy of 60 years, it would mean that air pollution as its exists in Delhi takes one million lives. If this is not murder, what is? This is genocide. Government inaction is the culprit for shortening of life," the court said.
Referring to satellite images submitted by the Delhi Pollution Control Committee (DPCC) in connection with stubble burning in northern India, the court said level of pollutants in the air peaked first week of November and biomass burning in Punjab was the "main culprit".
Secretary of Punjab, "we want an affidavit from him indicating why our directions were not carried out and what prevented him from doing so".
It gave the counsel for Punjab time till November 18, the next date of hearing, to place the affidavit before the court.
The bench made it clear that if it was not satisfied with the affidavit, it will issue contempt notice to the Chief Secretary.
It noted the submission of the counsel for Punjab that it would take "emergency measures" to put an end to stubble burning and expressed hope the steps would be implemented.
In order to achieve this objective, the court directed the municipal authorities to put in place trash receptacles for segregation of bio-degradable and non-degradable waste.
The court said worldwide, landfills were not encouraged and emphasis was on waste recycling and an alternative was to set up waste to energy plants.
It noted the Delhi government's proposal to convert the closed-down thermal power plant at Rajghat into a waste to energy plant (WTEP) and said the project, which is estimated to take 18 months from start to finish, should be started at the earliest.
During the hearing today, the court said bad air quality
killed people and caused respiratory ailments, which in turn led to reduction in working population and loss of productivity.
"In pure economic terms, look at the cost-benefit you would have if this issue of air pollution is addressed," the bench said.
Coming down heavily on Punjab, the court asked its counsel how it would make good the huge national economic loss that would have been caused due to closure of schools in Delhi and people falling sick and not being able to work.
The counsel for Punjab, while defending the state, said the government may have been slow to start but it has taken steps like setting up biomass power plants.
He said the state required around Rs 9900 crore for the machines and has written to the Centre.
Rejecting the contentions, the bench said it had warned all the states well in advance on these issues.
It also said that despite the advance warning, "damage has been done".
Earlier, the high court had noted that stubble burning, which is not permissible under the law, was going on despite the orders of NGT and HC.
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