Release EV subsidies to buyers without delay, HC tells govt.

 New Delhi

The Delhi High Court on Wednesday directed the city government to expedite the release of pending subsidies promised to buyers under the Delhi Electric Vehicle (EV) Policy, 2020.

A Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela observed that the government cannot take advantage of the absence of fixed timelines in the EV policy to justify long delays in subsidy disbursal. “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 Bench said in its order.

The court was hearing a public interest litigation filed by the Jan Seva Welfare Society, which pointed out that subsidy dues of around ₹48 crore remain unpaid to thousands of eligible beneficiaries despite their compliance with all policy requirements.

‘Erodes confidence’

Mr. Goel explained that buyers pay the full price upfront to dealers, with the subsidy reimbursed later. He argued that the delay not only imposes financial strain on consumers but also “erodes public confidence” in clean mobility initiatives.

One of the key objectives of the 2020 EV policy is to provide demand-side incentives to individual buyers through subsidies on electric two-wheelers, three-wheelers and four-wheelers to make them cost-competitive with internal combustion engine vehicles.

The plea highlighted that under the policy’s operational framework, subsidies should be disbursed within weeks of claim approval. The court directed the Delhi government’s Transport Department to establish a dedicated bank account for subsidy payments.