A bench headed by NGT Chairperson Justice Swatanter Kumar granted the relief to the Cantonment Board after it assured it that it would dismantle the vehicles which were more than 10- years old.
The green panel, however, made it clear that 10-year old diesel trucks being used by the Board should not be plied by it in the entire national capital.
"These trucks shall be auctioned for the purpose of dismantling and/or being plied in the area outside of Delhi which have been identified as the area where the ambient air quality is within the prescribed standards.
The tribunal also said that all the vehicles will be fixed with GPS and it will be ensured that the waste is transported to the identified sites.
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The Cantonment Board had approached the green panel seeking registration of its new vehicles as the tribunal had last year banned registration of new diesel vehicles as well as their re-registration after 10 years.
Later, the Supreme Court had also banned registration of diesel-run SUVs and cars having engine capacity beyond 2000cc in Delhi and National Capital Region.
In a jolt to diesel car owners in the national capital, the tribunal had directed the Delhi government to cancel the registration of all diesel-powered vehicles over 10 years old from plying in the city.
Later, the tribunal had clarified that de-registration of old diesel vehicles in the national capital would be carried out in a phased manner.