Release EV Subsidies to Buyers Without Delay: In a major relief for electric vehicle (EV) buyers in Delhi, the Delhi High Court has directed the city administration to immediately release the long-pending subsidies under the Delhi Electric Vehicle Policy, 2020. The court observed that despite having sufficient funds, the government had failed to disburse the subsidies on time, leaving thousands of consumers waiting for their rightful dues.
Court’s Observations
A Division Bench comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela made it clear that procedural hurdles or lack of a fixed timeline in the EV Policy cannot be used as excuses for delaying payments. The bench emphasized that administrative mechanisms are meant to facilitate public welfare schemes, not obstruct them. The court further ordered the Delhi Transport Department to establish a dedicated bank account to ensure smooth and transparent subsidy transfers to eligible beneficiaries.
Background of the Case
The order came in response to a Public Interest Litigation (PIL) filed by Jan Seva Welfare Society, a registered NGO working in the field of public welfare. The petition highlighted that subsidy dues worth nearly ₹48 crore were pending since January 2024, directly affecting thousands of buyers. Many EV owners had purchased their vehicles based on the assurance of financial support from the government, but delays in subsidy reimbursement eroded public confidence in clean mobility programs.
Concerns Raised in the PIL
The petitioner stressed that buyers had to pay the full price upfront to dealers, expecting timely reimbursement of subsidies. Delays not only strained consumers financially but also discouraged new buyers from adopting electric mobility. The NGO also clarified that it had no personal interest in the matter and filed the case purely in the public interest, relying on information obtained through RTI applications.
Government’s Response
During the hearing, the Delhi government’s counsel informed the court that over ₹179 crore had already been disbursed to more than 78,000 beneficiaries. The counsel assured the bench that a dedicated bank account for subsidy payments was being set up to prevent such delays in the future.
Delhi EV Policy, 2020 – Context and Significance
The Delhi EV Policy, launched in 2020, was aimed at accelerating the adoption of electric vehicles by offering demand-side incentives. Subsidies on electric two-wheelers, three-wheelers, and four-wheelers were designed to make EVs cost-competitive with internal combustion engine vehicles. While the policy officially expired in August 2023, it has been extended multiple times and is currently valid until November 15, 2025, with the government working on a new EV Policy 2.0.
Conclusion
The High Court’s ruling comes at a crucial time when EV adoption in Delhi has slowed due to subsidy delays. By mandating immediate disbursal and establishing a transparent payment mechanism, the court has reaffirmed the importance of consumer trust in clean mobility initiatives. For Delhi to achieve its ambitious EV adoption goals, timely financial support to buyers is not just desirable—it is essential. High Court Ordered – Release EV Subsidies to Buyers Without Delay
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