"Primarily, we are of the view that diesel vehicles cause more pollution than other vehicles. We may be right, we may be wrong. We are open to modifying it," a bench comprising Chief Justice T S Thakur said.
The court also asked Delhi government, Environment Pollution Control Authority and taxi owners association to give a concrete road map for phasing out diesel taxis from NCR.
"We may start a symbolic cess on any person who is buying a diesel vehicle which would be a one-time cess. What should be the scale, price, engine capacity is the thing to be deliberated upon. There has to be a rational basis to decide that," the bench, also comprising Justices R Banumathi and A K Sikri, said.
The observation came after Solicitor General Ranjit Kumar said that diesel was not the only "evil" responsible for the pollution and other fuels like CNG and petrol also pollute the environment.
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He further said the Centre has initiated "Make-in-India" policy and automobile sector cannot be held responsible for pollution.
"If any automobile manufacturer is carrying out his business as per laws of the country, then putting any restrictions beyond those in law would not help in any way. Manufacturers cannot be held responsible for pollution in the environment," he said.
(Reopen LGD39)
The Solicitor General said there are emission standards specified under Motor Vehicles Rules. Elaborating on the steps taken by the union government to reduce pollution, he said the Centre has imposed a ban on 15-year-old petrol vehicles besides a ban on 10-year-old diesel vehicles.
The bench then asked "how are you enforcing these rules? Laws are there but the real problem is of enforcement. Ban is imposed in Delhi. What have you done to enforce similar ban in Uttar Pradesh, Haryana, Rajasthan etc. You always say that you have launched a drive. Why don't you enforce ban in these areas?
"There is a problem of enforcement in this country. As a central government, what is your concern that you have for pollution? The reduction in stubble burning is not because of you, it is because there is no stubble. Have you prosecuted people for stubble burning? Why did you not issue a notification on stubble before December last year," the bench said.
Sibal said the order has crippled their business and he requested the court to allow cabs that ferry BPO employees to be exempted from the ban order.
"Our global business will suffer. Lift the ban temporarily and give us some time. Otherwise, the whole business will go outside the country," he said adding the sector employees of 2,50,000 people in NCR are ferried mostly by diesel cabs.