A bench of justices Badar Durrez Ahmed and Vibhu Bakhru, however, granted the Delhi government time till April to take a decision, saying three months was too much.
The government's submission was made in two PILs, filed on behalf of some auto unions challenging the policy on display of advertisements on PSVs, and in which the court has already reserved its verdict.
The court has taken up the matter now as it wanted to know whether the current government on its own would address the issues raised by the petitioners.
The earlier government had refused to remove the word "political" from the guidelines.
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In June 2013, the then Delhi government had banned advertisements on PSVs after auto-rickshaws started sporting Aam Aadmi Party (AAP) posters in the run-up to the Delhi assembly elections. Thereafter, the high court had stayed the Delhi government's ban.
Subsequently, in May 2014, the city government had informed the court that it was in the process of finalising the general guidelines for allowing advertisements on public service vehicles and it was awaiting approval of the Lt Governor.
The policy also stated that advertisements cannot be displayed without prior approval of municipal bodies and would be allowed only for vehicles which have installed GPS/GPRS systems.
The court, thereafter, reserved its judgement on September 19, 2014, and, while doing so it said, it would decide three issues--whether political advertisement should be allowed on public service vehicles, their pre-censorship and on the issue that advertisements will be allowed only for vehicles having GPS and GPRS systems.