The Supreme Court on Friday ruled that diesel cars that have an engine capacity of 2,000cc or more can ply in the National Capital Region after paying an additional tax of 1% of the vehicle's retail price as an environment fine. The apex court also asked the Central Pollution Control Board to open an account in a public sector bank to collect the green tax. Customers are likely to be charged more once the tax is introduced, reported The Indian Express.

The bench said the transport authority will register a big diesel car or SUV only if a receipt showing the payment of the green tax is provided. However the court said it will decide on small diesel cars later.

The Supreme Court was hearing a plea filed by Mercedes-Benz, which had offered to pay the 1% environment cess. The German carmaker had on Monday moved the court seeking cancellation of the ban on big diesel cars. The bench had first imposed the ban in December.