HC directs Delhi govt to release pending EV subsidies promptly

The Delhi High Court Wednesday asked the state government to expeditiously release the pending subsidy amounts to eligible beneficiaries and purchasers of electric vehicles under the Delhi Electric Vehicle Policy, 2020. It flayed the Delhi govt for “taking shield of the fact” that the policy does not provide any fixed timeline for disbursal of subsidy.

This significant direction of the court is expected to provide timely relief to thousands of beneficiaries awaiting subsidy reimbursement under the 2020 policy.

A division bench comprising Chief Justice Devendra Kumar Upadhayaya and Justice Tushar Rao Gedela directed the Delhi government to take all necessary steps to facilitate the opening of a separate bank account to ensure direct transfer of the subsidy amounts into the accounts of the beneficiaries, thereby streamlining the process and preventing unnecessary delay.


It observed that the government cannot take shelter under the absence of prescribed timelines in the EV Policy to justify inordinate delays in disbursal of subsidies.

“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 judges said.

The court was hearing a petition by Jan Seva Welfare Society's seeking release of pending subsidy dues amounting to around Rs 48 crore, which despite repeated representations remained pending, thereby causing hardship to the beneficiaries. The arbitrary, unreasonable, and discriminatory denial and withholding of benefits under a duly notified public policy, without prescribing or adhering to any rational classification or stipulated timeline for disbursal, is a violation of citizens' fundamental rights guaranteed under the Constitution, the NGO alleged.

Seeking a direct the state authorities to frame, notify and adhere to a definite and binding timeline for processing and disbursing all pending and future subsidy claims under the Policy, the petition also asked the court to constitute an Independent Committee or Monitoring Cell comprising subject-matter experts, representatives of the Comptroller and Auditor General, and civil society, to audit, oversee, and ensure the transparent and timely implementation of EV subsidies and to eliminate systemic irregularities in the Delhi EV Incentive Portal.

The Delhi government in 2020 formulated the Delhi Electric Vehicle Policy, 2020, which was notified on August 7, the avowed objective of accelerating the adoption of battery EVs as to contribute to improved air quality in the National Capital Territory of Delhi, reduce vehicular emissions, and position Delhi as a leader in sustainable urban mobility. The policy envisages targeted incentives and subsidies to make electric vehicles affordable, promote charging infrastructure, and support innovation and manufacturing in the EV ecosystem, the petition stated.

Numerous citizens purchased EV relying on the promise of subsidies as per the Delhi Electric Vehicle Policy, but now the Delhi government's reliance on vague and unsubstantiated references to "technical issues," without disclosure of any concrete timeline or remedial measures evidences a systemic administrative breakdown, counsel Yogesh Goel argued.

The Delhi government's inaction constitutes a breach of public trust, a violation of constitutional guarantees, a failure of administrative duty and a setback to environmental commitments, the counsel stated.