Reiterating its earlier order, the bench headed by NGT Chairperson Justice Swatanter Kumar also asked the Delhi government to confiscate the stock of non-biodegradable plastic bags within a week's time.
The order is applicable on low quality light polythene, which have thickness less than 50 microns.
The bench also asked the Delhi government and the Delhi Pollution Control Committee (DPCC) to file an affidavit and inform it about how its directions were being implemented in the city.
The Tribunal has also imposed an environment compensation of Rs 10,000 on vegetable vendors and slaughter houses for throwing garbage in the open.
It had earlier banned the use of non-biodegradable plastic bags and re-implemented the direction on January 1, 2017.
On July 31, the Tribunal also slammed the Delhi government for failing to implement the orders.
The order is interim and subject to change after the DPCC and Delhi Government submit their reports next week.
The prohibition applies to the entire city, especially restaurants, hotels and public and private functions.
In March last year, the union Environment Ministry had stated that 15,000 tons of plastic waste was generated every day, out of which 9,000 ton was collected and processed, but 6,000 ton plastic waste was not being collected.
Then Environment Minister Prakash Javadekar had said that the minimum thickness of plastic carry bags had been increased from 40 to 50 microns.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)