New Delhi, Aug 12 (IANS): The Supreme Court on Friday said that all diesel vehicles with engine capacity of 2,000 cc and more can now be registered in the National Capital Region provided that one per cent of ex-showroom price of the car is deposited as environment compensation charge with the Central Pollution Control Board.

Revoking its December 16, 2015, order prohibiting the registration of diesel cars and vehicles with engine capacity of 2,000 cc and more, the bench of Chief Justice T.S. Thakur, Justice A.K. Sikri and Justice R. Banumathi said that the registration of cars would take place only on the production of proof of the payment of 1 per cent environment compensation charge. 

The court said the Central Pollution Control Board will open a separate account in which the car manufacturers or their dealers will deposit the environment compensation charge.

The court kept open the question whether such an Environment Compensation Charge (ECC) has to be levied on all diesel cars even those below 2,000 cc. 

The bench said this question would be decided during appropriate proceedings at a later stage.

While recording the central government's submission that the court could not impose the ECC as it had no such power, the bench also left open the question whether one per cent ECC could be enhanced further. 

While resisting the move to impose ECC, Solicitor General Ranjit Kumar urged the bench to hear the central government's plea that the imposition of the ECC ought not to happen.