- Higher Environment Compensation Charges for commercial vehicles entering Delhi approved by Supreme Court
- Supreme Court aims to divert freight traffic to Eastern and Western Peripheral Expressways to reduce pollution
- The revised rates will come into effect from April 1, 2026.
Heavy and light commercial vehicles, including trucks, vans and dumpers, entering Delhi will have to pay higher Environment Compensation Charges (ECC) from April 1 after the Supreme Court approved a proposal by the Commission for Air Quality Management (CAQM) to enhance the levy. The move aims to restore the "deterrent effect" of the charge and discourage heavy commercial vehicles from passing through the national capital.
A bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and Vipul M. Pancholi approved CAQM's proposal to increase ECC for light commercial vehicles and two-axle trucks from Rs 1,400 to Rs 2,000. For three-axle trucks and vehicles with four or more axles, the charge will rise from Rs 2,600 to Rs 4,000. The revised rates will come into effect from April 1, 2026.
CJI Surya Kant, during a discussion on Delhi's traffic, remarked that the "concept of ring roads has become a complete failure. Big flop. In this court I argued in 2002 don't go for ring roads. I said it will be a failure, but I wasn't heard properly."
ASG Aishwarya Bhati at this point remarked, "Now your Lordship can rectify it."
The bench described the increase as "reasonable" and consistent with the court's original intent when the charge was introduced in 2015 to curb pollution in the capital. The court also approved the commission's proposal for a 5% annual increase in ECC rates, directing that the escalation will begin on April 1, 2027.
Additional Solicitor General Aishwarya Bhati appeared for CAQM, while senior advocate Aparajita Singh assisted the court as amicus curiae in the long-running environmental litigation.
The top court said the revised rates should act as a deterrent for heavy goods carriers and container trucks using Delhi as a transit route, encouraging them instead to take the Eastern Peripheral Expressway (EPE) or Western Peripheral Expressway (WPE) for onwards travel.
CAQM told the court that ECC rates had remained unchanged since 2015, while toll charges on the peripheral expressways have been periodically increased under the National Highways Fee (Determination of Rates and Collection) Rules, 2008.
As a result, the cost difference between travelling through Delhi and using the expressways had reduced, making it economically viable for freight vehicles to continue passing through the capital.
According to the commission, this has contributed to traffic congestion and increased emissions of particulate matter (PM) and nitrogen oxides (NOx) in Delhi.
The Environment Compensation Charge was first introduced by the Supreme Court in October 2015 in the MC Mehta vs Union of India case as part of a series of measures to address Delhi's severe air pollution.
At the time, the court had noted that although alternative routes existed, many commercial vehicles entered Delhi to avoid paying higher tolls on peripheral highways, adding to pollution levels in the city.
The court had directed that ECC be imposed on light and heavy commercial vehicles entering Delhi, with the funds collected to be used to augment public transport and improve road infrastructure, particularly for vulnerable road users such as cyclists and pedestrians.
In its affidavit, CAQM said the current ECC rates had lost their deterrent value due to inflation, rising vehicle operating costs, and higher toll charges on alternative routes. A comparative assessment of travel costs showed that the difference between using the peripheral expressways and travelling through Delhi was no longer significant enough to discourage transit traffic.
The commission therefore recommended revising ECC to Rs 2,000 for category 2 and 3 vehicles (light commercial vehicles and two-axle trucks) and Rs 4,000 for category 4 and 5 vehicles (three-axle trucks and vehicles with four or more axles).
CAQM also proposed a 5% annual increase in the charge, broadly in line with the average annual rise in toll rates on national highways, which it estimated at about 4.8% compounded growth since 2018. The revised charges, it said, would help restore the original deterrence value of ECC and create a stronger economic incentive for non-destination freight traffic to bypass Delhi.
To improve compliance and reduce congestion at toll points, the commission also proposed technological measures. It recommended that the Municipal Corporation of Delhi (MCD) install a barrier-free Multi-Lane Free Flow (MLFF) toll collection system integrated with RFID and Automatic Number Plate Recognition (ANPR) technology at all 126 toll collection points by October 2026. Such systems would allow seamless toll and ECC collection without requiring vehicles to stop, reducing congestion at Delhi's border entry points.
