India

SC won't stay green tax on trucks entering Delhi, but to hear contractor

PNS

There will be no compromise with the order to levy Environment Compensation Charge (ECC) of Rs 700 and

Rs 1300 from trucks and heavy commercial vehicles crossing Delhi, said the Supreme Court on Monday. The collection started from November 1 on an experimental basis for four months.

In the face of defiance from the contractor who refused to collect the ECC from November 1-6 and even threatened to exit the contract, the bench headed by Chief Justice Hl Dattu said it will not hesitate to initiate contempt proceedings even as it agreed to hear out the company’s objections.

“We are not going to change a word in our order. If contractor is not going to follow our order, we will issue contempt,” said the bench, also comprising Justices SK Singh and Amitava Roy. The bench even cited press reports suggesting no ECC levied from November 1 to November 6. It said, “day in day out, we read in the newspapers that there is highest level of pollution in the city… the order has to be sustained as it is to save Delhi and the people of Delhi from pollution,” which according to the bench had assumed life-threatening levels.

The toll tax concessionaire SMYR Consortium llP had moved an application complaining that the October 12 order needs to be recalled as collection of ECC was not part of its contract. Senior advocate Shyam Divan who argued for the company said that the order violated fundamental principle of natural justice as the order was passed without hearing the company.

The company claimed that the contract required it to annually deposit Rs 1653.48 crores to the South Delhi Municipal Corporation, the nodal agency for collection of toll tax.

But with ECC, the entry of trucks had dropped. The Court order required installation of radio frequency identification devices in order to make toll collection transparent and swift at the entry gates, which Divan said was additional financial burden besides the limitation of several entry points having no electricity.

Taking note of Divan’s concerns, the bench posted the matter for hearing on November 27.