The Delhi government has pledged to clear approximately Rs 140 crore in pending electric vehicle (EV) subsidy dues, addressing a backlog that has frustrated thousands of EV buyers for over two years. The announcement follows a stern directive from the Delhi High Court on September 3, 2025, which slammed the government for delays and ordered immediate action to disburse the funds promised under the Delhi Electric Vehicles Policy 2020.

Transport Minister Pankaj Singh confirmed on Monday that the Transport Department is fast-tracking the verification of all subsidy applications to ensure eligible beneficiaries receive their payments promptly. A dedicated online portal is also in the works to streamline the process and enhance transparency, according to a senior official. “We are committed to resolving this issue swiftly, as per the court’s mandate,” Singh stated, emphasizing the government’s intent to restore trust among EV adopters.

The High Court, led by Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela, rejected the government’s excuse that the 2020 EV Policy lacked a specific timeline for disbursements. “Procedural hurdles cannot be a pretext to delay payments,” the bench declared, pushing the administration to prioritize the payouts. The ruling has sparked hope among EV owners, many of whom purchased two-wheelers and three-wheelers expecting financial incentives that never materialized.

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The delays were partly attributed to administrative disruptions following the arrest of former Chief Minister Arvind Kejriwal in 2024 over an excise policy case, which stalled critical cabinet meetings needed to extend the EV Policy. Since its launch in August 2020 under the Aam Aadmi Party (AAP) government, the policy has driven significant EV adoption, with over 2.19 lakh vehicles—1.09 lakh two-wheelers and 83,724 three-wheelers—availing tax exemptions. By 2023, Rs 177 crore in incentives had been disbursed, but the backlog grew as the policy lapsed in August 2023 and faced multiple extensions.

In a bid to strengthen its EV framework, the Delhi government extended the current policy until March 31, 2026, to allow time for public consultation on the upcoming Electric Vehicle Policy 2.0. Last month, Chief Minister Rekha Gupta formed a committee, chaired by Minister Ashish Sood, to draft the new policy, aiming to bolster Delhi’s position as a leader in sustainable mobility. With the court’s intervention now spurring action, the government faces pressure to deliver on its green promises and support the capital’s growing EV ecosystem.

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