The National Green Tribunal (NGT) on Thursday directed Volkswagen India to deposit a sum of ₹500 crore with the Central Pollution Control Board (CPCB) within two months for using cheat devices in its diesel vehicles.
A bench headed by NGT Chairperson Justice Adarsh Kumar Goel enhanced the compensation amount of ₹171 crore, which was recommended by an NGT-appointed committee, as a means of “creating deterrence.”
“Sustainable development is the main guiding factor... we are unable to accept the manufacturer’s objections to the report. Not only did the manufacturers use cheat devices to suppress the test results, the NOX emission was found to be higher,” the bench said.
On-road testing results
During the hearing, the company however contended that prescribed norms under BS-IV were not violated and that the test results were based on ‘on-road testing’, for which there were no prescribed norms.
However, the bench said, “Are you trying to say that pollution cannot be checked on the road? Yours is a vehicle having a cheat device…our finding is that you have a cheat device for which you have been held guilty world-over… on-road testing is the only way…”
While stating that the ₹171 crore recommended by the committee was a “conservative value due to lack of methodology to calculate overall damage” the bench directed the company to deposit the amount to the CPCB. The bench further said that the apex pollution monitoring body may consider utilising the money towards improving air quality in the National Capital Region and other highly-polluted areas. Additionally, the bench said that the CPCB can “initiate prosecution upon due consideration.”
Firm to challenge order
Reacting to the NGT order, a Volkswagen spokesperson said, “The Volkswagen Group in India reiterates that all cars from the group are compliant with the emission norms defined in India. The Group awaits a copy of the order. The Group will challenge the NGT order before the Supreme Court.”
In November last year, the green panel had directed Volkswagen to deposit a sum of ₹100 crore as interim compensation.
Coming down heavily on the company for not complying with the order, the NGT, in January, had directed Volkswagen to deposit the sum within one day.
The directions came when the NGT was hearing a plea moved by petitioner Saloni Ailawadi and others, who sought a ban on the sale of Volkswagen vehicles for alleged violation of emission norms.
