May 7 , 2019 ;
NEW DELHI: In a relief to German carmaker Volkswagen, the Supreme Court on Monday agreed to hear its plea against the National Green Tribunal (NGT) order directing it to pay Rs 500 crore as fine for using a 'cheat device' in its diesel cars and directed that no coercive action be taken against the automobile company, which has so far paid Rs 100 crore.
Appearing before a bench of justices S A Bobde and S Abdul Nazeer, senior counsel A M Singhvi, representing Volkswagen, contended that the NGT had erred in passing the order by increasing the amount of fine on the company from Rs 100 crore to Rs 500 crore.
He said the SC had earlier found four errors in the NGT order and referred the matter back to the tribunal for adjudication, but the NGT instead increased the amount. The tribunal had enhanced the compensation amount to Rs 500 crore as a means of "creating deterrence" and directed the company to deposit the amount with the Central Pollution Control Board (CPCB). The amount was to be used for improving air quality in the NCR and other highly polluted areas.
The green panel had on November 16, 2018 said use of a 'cheat device' by Volkswagen in diesel cars in India led to inferenceof environmental damage and had directed it to deposit an interim amount of Rs 100 crore with the CPCB.
Volkswagen India had in December 2015 announced recall of 3,23,700 lakh vehicles in India to fix the emission software after it was found that their on-road emissions were 1.1 times to 2.6 times higher than the applicable BS-IV norms.
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