Volkswagen In Trouble With Rs 500 Crore Penalty By NGT For Installing 'Cheat Devices' In Its Cars

Volkswagen is finding itself in trouble yet again for diesel emissions from its vehicles. This time, the German automaker has been slapped a penalty of Rs 500 crore for installing ‘cheat devices’ in its offerings which are harmful to the environment.

The penalty has been handed by a National Green Tribunal (NGT) bench, headed by NGT chairperson Justice Adarsh Kumar Goel and has to be paid by the company within a two months period.

Volkswagen India, however, defends itself from the allegations, repeating its earlier stance that all the vehicles from the company are totally in accordance with the emission norms in the country. "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.

(Representative Image: Reuters)

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The two and fro has taken place before as well, with the company moving to the top court earlier this year in order to challenge the Rs 100 crore penalty put out by the green tribunal. The penalty was handed out back in November 16, 2018, when the NGT had alleged that Volkswagen had been using ‘cheat devices’ in its diesel cars in India which resulted in environmental damage through the vehicles. The tribunal had then directed the company to deposit an interim amount of Rs 100 crore with the Central Pollution Control Board (CPCB).

The NGT then slammed Volkswagen in January for not depositing the amount in time, directing it to do the same within 24 hours, failing which the directors of the company would be sent to jail.

(Representative Image: Reuters)

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Volkswagen has been facing a similar flak globally, with the US government lashing out at the company earlier for its diesel emission scandal, to which it even pleaded guilty back in 2017. The case resulted in a USD 4.3 billion settlement with the US authorities and nine people getting charged. The penalty from the NGT can prove to be a major blow to the firm as it adds to its already pending penalties which amount to a total USD 2.8 billion in US and Canada.

(With inputs from PTI)