Delhi Diesel Ban: Mercedes-Benz Agrees to Pay Environment Cess

Looking to counter the blanket ban imposed by the Supreme Court on diesel cars in the Delhi-NCR, Mercedes-Benz has offered to pay an environmental cess to resume sales in the region. The Apex court, on Monday, agreed to hear a plea from the Chakan-based carmaker that has taken this step in exchange for the ban to be waived off.

The lawyer representing the luxury carmaker, Mohan Parasaran moved the motion before a bench comprising of Chief Justice TS Thakur and Justices AM Khanwilkar and DY Chandrachud. The bench approved the plea to be heard on Friday, August 12, after Mercedes finally gave in to paying one percent of the ex-showroom price of the cars as green cess.

The cars in question are diesel vehicles that have engine capacities of 2000cc or more. Supreme Court had banned the registration of any such new cars in the NCR till March 31, 2016. The ban was extended further for in the coming weeks.

On July 4, the court had indicated that the registration of these cars might be resumed, subject to the payment of an added environmental cess by the carmakers. The Ministry of Heavy Industries, which supported the cause of the auto industry, though, has been opposing SC’s demand of the added cess.

Mercedes is not the only carmaker adversely affected by this mandate. Japanese carmaker Toyota had also announced recently about reconsidering any fresh investment in India. With more norms, such as the phasing out of ten years or older diesel cars in the NCR, propping up for the region’s fight against pollution, carmakers are in for testing times in the National Capital.