Delhi High Court orders Delhi government to pay subsidies to EV purchasers without delay

The Delhi High Court on Wednesday ordered the Delhi government to take immediate steps to disburse subsidies promised to customers who bought electric vehicles [Jan Seva Welfare Society v Govt of NCT of Delhi and Anr]. 

A Division Bench of Chief Justice Devendra Kumar Upadhayaya and Justice Tushar Rao Gedela observed that the government cannot hide behind the fact that the Delhi Electric Vehicles Policy of 2020 does not prescribe any timeline to disburse the amount.

The Court noted that the government has the funds but the disbursal was being delayed due to procedural issues. 

“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 observed. 

Therefore, it ordered the Transport Department of the Delhi government to expeditiously set up a dedicated bank account for the disbursal of the subsidy amount. 

The Bench passed the order while dealing with a public interest litigation (PIL) petition filed by an organisation named Jan Seva Welfare Society.

It raised concerns that many people who bought the EVs in Delhi are yet to receive the subsidy amount. 

It was stated that the 2020 EV policy provides for a range of financial incentives to meet its vision of ensuring that 25% of the new vehicles bought in the city are EVs. 

The incentives include a subsidy on the purchase of new EVs. 

The Court was informed today that when one buys an EV, they pay the full amount to the dealer but the subsidy is later reimbursed to the buyer. 

However, the petitioner argued that as per the data provided by the Delhi government under the Right to Information Act (RTI Act), over ₹48 crore worth of subsidy is still to be disbursed by the Delhi government. 

The Delhi government counsel told the Bench that over 78,000 beneficiaries have received more than ₹179 crores of subsidy and that a dedicated bank account is being set up to address the issues of delay.

After considering the case, the Court said that the account should be set up immediately after obtaining the permissions from the required departments. 

“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 added.