“No coercive action” against Volkswagen, says SC and agrees to hear petition challenging Rs 500 crore fine on carmaker

The Supreme Court on Monday agreed to hear Volkswagen Group’s plea challenging a fine of Rs 500 crores imposed by the National Green Tribunal (NGT).

The SC bench of Justices Bobde and S Abdul Nazeer hearing the matter Volkswagen India Private Limited and ors. v Saloni Ailawadi and ors., has said that no coercive action should be taken against Volkswagen until the matter is decided.

The NGT on November 16, 2018 had said that use of ‘cheat device’ by Volkswagen in diesel cars in India leads to inference of environmental damage and had directed it to deposit an interim amount of Rs 100 crore with the Central Pollution Control Board (CPCB).

After SC pointed out errors with NGT’s findings in January this year, and remanded the case back, NGT slapped a fine of Rs 500 crore on the German auto major for damaging the environment on March 7, 2019.

—India Legal Bureau