Supreme Court Approves Environment Compensation Charge Hike For Commercial Vehicles Entering Delhi, Mandates 5% Annual Increase

The Supreme Court has approved a proposal to enhance the Environment Compensation Charge (ECC) on commercial vehicles entering Delhi, while mandating a 5% annual increase to maintain its deterrent effect against pollution. A bench led by Chief Justice Surya Kant and comprising Justices Joymalya Bagchi and Vipul M Pancholi, by order passed on 12/03/2026, but uploaded today, approved the recommendations submitted by the Commission for Air Quality Management (CAQM) to revise ECC rates with effect from April 1, 2026, observing that the recommendations were “reasonable, just, and fair.” “We have considered the proposal submitted by the CAQM and find the same to be reasonable, just, and fair.”, the court said. The revision of the ECC rates, as approved by the Court, would now be as follows: Also, the Court approved the proposal for an annual increase in the ECC by 5% starting from April 1 of each year, emphasizing that non-essential commercial vehicles must avoid entering Delhi and instead use peripheral expressways."With a view to discourage entry of diesel commercial vehicles into Delhi and taking into account inflation and increase in vehicle operating costs as well as annual increase in NHAI toll rates the Commission recommends that the ECC rates may be enhanced by 5% every year w.e.f. 1st April (rounded off to nearest 10 rupees) and such revision may be notified by GNCTD.", the court endorsed the proposal.The focus of these proceedings arising out of 1985's MC Mehta case has been on curbing vehicular pollution and regulating the entry of commercial vehicles into Delhi. The Court has been overseeing measures such as the Environment Compensation Charge (ECC), diversion of heavy vehicles through peripheral expressways, and coordination between agencies like the Commission for Air Quality Management (CAQM), Municipal Corporation of Delhi (MCD), and the National Highways Authority of India (NHAI), to address worsening air quality in the region. Cause Title: M.C. MEHTA VERSUS UNION OF INDIA & ORS., Writ Petition(s)(Civil) No(s).13029/1985Click here to download order

Supreme Court Approves Environment Compensation Charge Hike For Commercial Vehicles Entering Delhi, Mandates 5% Annual Increase

Yash Mittal

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