NEW DELHI: The Supreme Court on Monday stayed the ₹500 crore fine against German auto major Volkswagen imposed by the National Green Tribunal (NGT) for damaging the environment through use of "cheat device" in its diesel cars sold in India.
The Supreme Court bench headed by Justice SA Bobde said, "till it hears the matter, no coercive steps be taken against the company." It also agreed to hear Volkswagen’s plea against the NGT penalty.
On 7 March, the NGT slapped a fine of ₹500 crore on the local unit of Volkswagen and directed the car maker to deposit the amount within two months.
Volkswagen India had said that it did not use any “cheat device"—a software that activates the engine’s emissions controls only during laboratory testing. However, in December 2017, it recalled 340,000 vehicles of 13 models with EA 189 diesel engines for technical updates.
Saloni Ailawadi, a school teacher, and a few others had filed a petition before the NGT seeking a ban on the sale of Volkswagen vehicles for alleged violation of emission norms.
