In a major relief to over 64,532 cab operators, the Supreme Court on Tuesday allowed diesel taxis holding all-India tourist permits (AITP) to operate in the national capital region (NCR) till the expiry of their permits.

It, however, banned fresh registration of all diesel taxis in the city and directed the competent authorities to register only new city taxis operating on dual fuel or petrol or CNG.

With this order, all old diesel tourist taxis can resume operations in Delhi/NCR as they used to, prior to the April 30 order which barred them from doing so.

Modifying its earlier orders that barred diesel taxis from plying in the NCR, a bench headed by Chief Justice T S Thakur said the existing taxi operator holding AITPs will be converted to AITP-O permits and will be allowed to offer point-to-point services (ferrying BPO employees) in NCR, provided they complied with regulations of safety, security and fare.

Thus, AITP operators will have to place on record for prior clearance all relevant details, including their drivers’ licences, vehicle insurance details, among others.

The apex court extended their area of operation from the confines of National Capital Territory (NCT) of Delhi to all NCR regions, including Gurgaon, to make up for the lack of vehicles caused due to the ban.

While clarifying the new taxi regime in the NCR, the apex court said cab AITP taxis will be granted renewal after expiry of their permits only after giving an undertaking that they would not offer point-to-point services in the NCR.

The top court also directed the government to frame suitable rules with regard to safety, security and fares.

“You must understand what we are trying to do here… There has to be a gradual phaseout. Using AITP vehicles to ferry BPO staffers is abusing the law. These are not genuine AITP operators are used only by BPOs,” the CJI said, while making it clear its final objective of gradual phaseout of diesel taxis and ensuring clean air.

Senior advocate Harish Salve, who is assisting the court as amicus curiae, informed the court that the Environment Pollution Control Authority had come up with a draft solution on phasing out of diesel cabs after holding consultations with the Delhi government for the problems related to diesel cabs’ issue.

Taxi aggregator Ola claimed that its entire fleet had converted to CNG and its rival Uber also said they are complying to the norms.

Solicitor general Ranjit Kumar argued that NCR-specific rules would be difficult to formulate, as AITP rules were meant for the whole country.

The Bench also noted information technology industry body National Association of Software and Services Companies (Nasscom) assurance that all its future contracts would ensure that cabs will only be non-diesel cabs. The CJI on Monday had asked the Central and state governments to submit a long-term action plan on curbing environmental pollution.

A Supreme Court order on April 30 had pulled 30,000 cabs off the road because they run on diesel and not greener compressed natural gas. It had initially asked the diesel cab operators in the NCR to switch over to CNG by March 1. That deadline was later extended to March 31 and then to April 30. The top court had on December 16 last year considered Salve’s contention that all diesel taxis be moved to CNG fuel within a reasonable time, but not later than March 1, 2016.

The order sparked protests across the NCR and cab drivers forced the Centre and the Delhi government to approach the apex court to lift the ban.