HC Steps In To Try and Provide Relief To Delhi EV Buyers Awaiting Subsidies Worth ₹48 Crore

The Delhi High Court on Wednesday directed the state government to disburse subsidies owed to electric vehicle (EV) purchasers without any further delay. The order came in response to a public interest litigation (PIL) that revealed subsidy dues worth more than INR 48 crore, which remain unpaid to thousands of eligible buyers under the Delhi Electric Vehicle Policy, 2020.

Background of the PIL

The petition was filed by Jan Seva Welfare Society, a registered organisation working on public welfare issues. The society argued before the court that, despite fulfilling all eligibility criteria under the EV policy, many purchasers have not received their promised subsidies.

The Delhi EV Policy was notified in August 2020, promoting the adoption of clean mobility by offering financial incentives to buyers of electric vehicles. However, the PIL alleged that the ‘unexplained non-disbursal of subsidy' is the main issue. It is undermining both consumer rights and the broader public interest objective of reducing vehicular pollution in the capital, the PIL noted.

The plea further emphasised that the delay in providing financial support discourages citizens from switching to eco-friendly alternatives and indirectly incentivises the use of petrol and diesel vehicles, worsening air quality and public health risks.

Government’s Response

The Delhi government, in its submission, highlighted that 78,158 beneficiaries had already received subsidies amounting to over INR 179 crore. It also informed the court that a dedicated bank account is being set up to streamline subsidy disbursals and prevent further delays.

Responding to allegations of negligence, the government noted that the EV policy does not specify a fixed timeline for subsidy payments. However, the court rejected this ludicous argument, remarking that “such a ground, in our opinion, is not available for the government.”

The government has attributed the backlog to ‘technical issues’ on its disbursement portal, as revealed in a previous Right to Information (RTI) reply. According to its data, subsidy payments for 25,496 EVs remain pending.

Court’s Observations and Directions

Expressing concern over the state’s stand, the bench ruled that procedural delays cannot justify withholding dues from legitimate claimants. The court directed the government to resolve all pending technical and procedural hurdles immediately and ensure that eligible purchasers receive the subsidies expeditiously once the dedicated bank account is operational.

What Lies Ahead

With the court’s intervention, pressure is now mounting on the Delhi government to address systemic flaws in the subsidy disbursal framework. The decision is expected to bring relief to thousands of EV buyers who have been waiting for their incentives and may also reaffirm public confidence in the state’s commitment to promoting clean transport.

The PIL warned that without timely disbursal, the city risks slowing down its transition to sustainable mobility, despite being one of the most polluted urban centres in the world. According to the government data, 25,255 electric cars and 1.4 lakh electric two-wheelers e2w have been registered in Delhi so far. The delay in the promised benefits may hurt future numbers.