Delhi HC directs govt to clear pending EV subsidies, raps delay in payments

The Delhi High Court has ordered the government to quickly release pending EV subsidies; buyers have been waiting as procedural delays held back over ₹48 crore in payments

The Delhi High Court on Wednesday directed the Delhi government to immediately release subsidies promised to buyers of electric vehicles, according to a report by Bar and Bench.

 

A division Bench of Chief Justice Devendra Kumar Upadhayaya and Justice Tushar Rao Gedela said the government cannot use the absence of a fixed timeline in the 2020 Delhi Electric Vehicles Policy as a reason to delay payments.

 

“The government is taking shield of the fact that the Delhi Electric Vehicles Policy does not provide any fixed timeline for disbursal of subsidy. Such a ground, in our opinion, is not available for the government,” the court said, reported Bar and Bench.   

 

Subsidy held up despite funds

The Bench noted that the government has enough funds but the distribution has been delayed due to procedural issues. It ordered the state transport department to quickly set up a dedicated bank account to ensure the subsidies are released without further delay.

 

The plea highlighted that many buyers who purchased EVs in Delhi are still waiting for their subsidies. The 2020 policy provides financial incentives to encourage people to buy electric vehicles, with a target of making 25 per cent of new vehicle registrations in the city electric.

 

According to the scheme, buyers pay the full price at the dealership and later receive a reimbursement from the government. However, according to RTI data cited by the petitioner, more than ₹48 crore in subsidies is yet to be paid, the news report said.

 

The Delhi government’s counsel informed the court that over 78,000 beneficiaries have already received subsidies worth more than ₹179 crore. He also said that a dedicated bank account is being created to speed up the disbursal process.

 

The Bench directed that the account should be set up immediately after getting necessary approvals. “We expect that the procedural delays shall immediately be addressed and after setting up the new bank account, the payment shall be expeditiously made,” the court said.