Delhi Govt to Clear ₹140 Crore in Pending EV Subsidies After High Court Push

The Delhi government will release nearly ₹140 crore in pending electric vehicle (EV) subsidy claims, offering long-awaited relief to thousands of EV buyers and manufacturers. The decision comes after a strong directive from the Delhi High Court, which ordered the administration to honour its fiscal commitments without further delay.

High Court Pushes for Timely Disbursement

On September 3, the High Court ruled that administrative bottlenecks cannot justify withholding payments, directing the government to clear the backlog. A dedicated online portal is now being used to verify and process applications.

Since the launch of the Delhi EV Policy in August 2020, more than 2.19 lakh EVs — including over 1.09 lakh two-wheelers and 83,724 three-wheelers — have benefited from tax exemptions. Subsidy disbursements worth ₹177 crore had been made until 2023 before delays stalled further payouts.

Policy Background and Next Steps

The Delhi EV Policy, introduced under the AAP government, has been extended until March 2026 while work begins on EV Policy 2.0. A dedicated committee has been formed to frame the updated roadmap, which is currently under public consultation.

Market Impact

Timely disbursal is seen as crucial for consumer confidence and sustaining Delhi’s lead as one of India’s most progressive EV markets. For buyers and auto dealers, the payments will ease cash flow pressures, while for manufacturers and suppliers, the move signals much-needed policy stability.