Supreme Court Approves Environment Compensation Charge Hike For Commercial Vehicles Entering Delhi, Mandates 5% Annual Increase
The Supreme Court has approved a steep hike in Delhi’s Environment Compensation Charge for commercial vehicles entering the city and also backed a 5% annual increase from April 1, 2027. The revised charge is meant to preserve its deterrent effect against pollution and discourage transit-heavy commercial traffic through Delhi.
Revised charges
The reporting indicates the approved rates include higher fees for light motor vehicles and trucks, with the revised structure effective from April 1. One report states LMVs will pay Rs 2,000 and trucks Rs 4,000, up from Rs 1,400 and Rs 2,600 respectively.
Court’s reasoning
The bench accepted the CAQM proposal as “reasonable, just, and fair,” noting that the charge was originally introduced to curb Delhi’s severe air pollution. The court also emphasized that non-essential commercial vehicles should avoid entering Delhi and use peripheral routes instead.
Annual escalation
The 5% annual increase is intended to keep the ECC effective in real terms, especially in light of inflation and rising vehicle operating costs. The escalation is to begin on April 1, 2027 and be rounded to the nearest 10 rupees.
The ECC was first introduced by the Supreme Court in October 2015 in the MC Mehta v. Union of India matter as part of Delhi’s anti-pollution measures. This latest order continues that framework by reinforcing the deterrent value of the charge.
