A bench headed by NGT chairperson Justice Swatanter Kumar directed the states and Union Territories to earmark areas having less vehicle density.
The green panel said the states should identify areas where the dispersion of the air is higher so that banned vehicles can be allowed to ply there.
"Have you (states) identified no-pollution zones in states so that we can send old diesel vehicles to such areas? Why don't you people do it. If the states do not tell us places to accommodate 10-year-old vehicles then there is no question of allowing such vehicles," the bench said.
During the hearing, the counsel appearing for the Delhi government told the bench that Uttar Pradesh and some other states have identified such areas and would file a detailed report to it.
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When the tribunal asked Haryana about such areas, the counsel appearing for the state said that he would have to seek instructions on the issue.
The matter has been fixed for hearing on August 24.
Earlier, the NGT had asked all states and Union Territories to identify and inform it about the "no-pollution" zones in their areas for plying of de-registered diesel cars which have been barred from running in the national capital region (NCR).
It had then ordered that only de-registered diesel vehicles which were less than 15-year-old could get NOC for plying in select areas outside Delhi-NCR to be decided by states where vehicle density was less.
The green panel had in July last year said that all the vehicles which were de-registered would not be permitted to ply in Delhi-NCR.
"However, the authorities will issue NOC for such vehicles to be registered outside Delhi/NCR. We further clarify that in terms of the orders of the tribunal, every state has to identify areas where the dispersion of the air is higher and vehicular density is least...And put them on the respective websites," it had said, adding that the RTO, Delhi would issue NOC for transfer of these vehicles only for such areas which were identified by the states.