National Green tribunal slaps Rs 500 crore fine on Volkswagen

NEW DELHI: The National Green Tribunal (NGT) on Thursday slapped a Rs 500 crore fine on Volkswagen, accused of installing ‘cheat devices’ in its diesel cars in India, which helped the company clear emission tests without being compliant with Indian emission norms. NGT has directed Volkswagen to pay the penalty within two months.

The tribunal enhanced the compensation amount of Rs 171.34 crore recommended by a joint committee appointed by NGT, as a means of creating deterrence. The bench headed by NGT chairperson Justice Adarsh Kumar Goel said, “Sustainable development is the main guiding factor... We are unable to accept the manufacturer’s objections to the report.” The German automaker refuted the charges and said it will challenge the ruling before the Supreme Court.

“The Volkswagen Group in India reiterates that all cars from the Group are compliant with the emission norms defined in India. The Group awaits the copy of the order of Honourable NGT. The Volkswagen Group will challenge the order of the Honourable NGT before the Honourable Supreme Court,” Volkswagen Group India spokesperson said.

Earlier, the NGT directed Volkswagen to deposit Rs 100 crore by January 18, failing which it would take punitive action against the management. However, the apex court ruled that punitive action was not warranted on the carmaker.

In November, NGT had directed Volkswagen to deposit Rs 100 crore with the Central Pollution Control Board within a month for having allegedly flouted environmental norms by using the cheat device.

The joint committee report had said that Volkswagen cars released an estimated 48.678 tonnes of harmful nitrogen oxide in 2016 in Delhi and recommended Rs 171.34-crore fine on the carmaker towards health damages.