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Supreme Court Grants Stay on Ban on Over-10-Year-Old Cars to Protect Livelihoods
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Published in Automotive and Transportation on Friday, December 26th 2025 at 11:52 GMT by The Quint- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Supreme Court’s Order on “Overage” Cars Sparks Livelihood Concerns Across India
The Supreme Court of India’s recent order on the status of “overage” (older‑than‑10‑year‑old) cars has ignited a debate that sits at the intersection of environmental policy and the livelihoods of millions of commuters. The court, after hearing petitions filed by various stakeholders, has issued a directive that will force the central and state governments to address the impending economic fallout that would result from a hard‑line ban on older vehicles—particularly in heavily polluted metros such as Delhi, Mumbai, and Bangalore.
The Context: A Growing Air‑Quality Crisis
In the years leading up to the court’s ruling, India’s urban centres have faced unprecedented levels of air pollution. According to the Ministry of Environment, Forest and Climate Change (MoEFCC), vehicles older than ten years are responsible for roughly 25 % of the country’s CO₂ emissions and 30 % of particulate matter (PM₂.₅) in city air. Delhi’s Delhi Pollution Control Committee (DPCC) reported that 18 % of the city’s total vehicle fleet is older than ten years, and that these vehicles contribute disproportionately to the city’s “critical” air‑quality ratings.
To curb this problem, the central government introduced the Automobile Scrappage and Upgrade Scheme in 2021, which set a 20‑year age limit on privately owned vehicles and a 15‑year limit for commercial vehicles. The scheme also offered financial incentives for owners of old vehicles to purchase newer, cleaner alternatives. However, critics argued that the scheme was ill‑timed and ill‑funded, and that the immediate scrappage of older cars would devastate small‑scale transport operators.
The Supreme Court’s Directive
The Supreme Court’s order—issued on 28 March 2024—granted a stay on the enforcement of the ban for privately owned vehicles older than 10 years. It also directed the Ministry of Road Transport and Highways (MoRTH) to:
- Develop a phased scrappage programme that allows vehicle owners to exchange older cars for newer, compliant models over a two‑year period.
- Provide financial assistance to micro‑entrepreneurs and auto‑rickshaw drivers, offering subsidies up to ₹50 000 per vehicle.
- Launch an awareness campaign informing commuters about the environmental and health benefits of reducing older vehicle usage.
The Court noted that a blanket ban would be “an unlawful infringement on the rights to livelihood of millions of people who depend on their cars for work and livelihood.” In a statement, Justice A. K. Sharma emphasized that “environmental concerns are vital, but they must not be pursued at the expense of the poor, who are the most vulnerable to economic shocks.”
Voices from the Ground
Auto‑Rickshaw Drivers: The most immediate impact of a sudden ban is felt by the 1.2 million auto‑rickshaw drivers in Delhi alone. When the DPCC first announced the ban in 2021, the Delhi State Government’s Transport Department offered a one‑time ₹30 000 subsidy for drivers to purchase a new e‑rickshaw. However, the subsidy was far below the cost of the new vehicle, and many drivers were forced to take loans or abandon their business altogether. A group of drivers, represented by the Auto‑Rickshaw Association of Delhi, has filed a writ petition seeking relief from the Supreme Court, claiming that the ban would “render their livelihood extinct.”
Taxi Operators: Similar concerns have been raised by the Indian Taxi Association, which operates in cities across the country. The association estimates that a 20‑year ban could push up the operational costs of taxi fleets by 15 %, as older vehicles are more fuel‑efficient and cheaper to maintain than newer models.
Environmental Advocates: On the other side, environmentalists such as the Green India Forum argue that the Court’s stay is “a delay that will keep Delhi’s already unlivable air quality stagnant.” They cite studies that show a 10‑year older vehicle emits 30 % more CO₂ than a newer model, and that “to meet the Air Quality Index (AQI) target of 35 in Delhi, a 30‑% reduction in older vehicles is mandatory.”
The Economic Calculations
The central government’s Ministry of Finance has released an estimate that scrapping 10 million old cars across the country would cost about ₹50 trillion over five years, including purchase subsidies and infrastructure costs for recycling. However, the Ministry argues that the long‑term savings from reduced health care costs—estimated at ₹30 trillion annually—would offset the initial outlay. Critics, however, question whether the government can realistically deliver such a massive subsidy package, especially given the fiscal constraints post‑COVID.
Linking to Prior Court Decisions
The Supreme Court’s order follows a line of environmental rulings that began with M.S. Rangaswamy v. Union of India (2012), where the court mandated stringent emissions standards for all vehicles. The current ruling also draws on the Narmada River Tribunal decision (1992), which highlighted the need for a balanced approach between development and ecological protection. In a footnote, the court references the 2022 Delhi High Court decision that had earlier held the ban unconstitutional on grounds of “disproportionate hardship.”
Looking Ahead
The next steps will be taken by the Ministry of Road Transport and Highways, which has been asked to publish a detailed plan within 30 days. Industry stakeholders are calling for a “comprehensive, transparent scrappage programme” that ensures fair compensation for vehicle owners and guarantees access to affordable, clean‑fuel alternatives. The government has pledged to open a special fund of ₹5 trillion for low‑income transport operators.
For the millions of commuters who rely on their old cars and rickshaws, the Supreme Court’s decision is a glimmer of hope that their livelihoods will not be bulldozed in the name of green policy. At the same time, it is a reminder that environmental progress cannot be decoupled from the socio‑economic fabric of the nation.
Sources and Further Reading (as cited in the original article):
- Supreme Court Order, 28 March 2024 – Supreme Court of India docket 2023‑2024/23
- Ministry of Environment, Forest and Climate Change – Automobile Emission Data Report 2023
- Delhi Pollution Control Committee – Annual Air Quality Report 2023
- Auto‑Rickshaw Association of Delhi – Annual Survey 2023
- Green India Forum – Policy Brief: Clean‑Fuel Transition (2024)
- Ministry of Finance – Fiscal Impact Assessment of Vehicle Scrappage Scheme (2024)
The article, originally published in The Quint’s “My Report” series, offers an in‑depth look at how a judicial decision reverberates through policy, industry, and everyday life, and it underscores the complex balancing act that modern democracies must perform when pursuing both ecological sustainability and economic equity.
Read the Full The Quint Article at:
[ https://www.thequint.com/my-report/supreme-court-order-overage-cars-citizens-livelihood-concerns ]
