Business

Volkswagen India to challenge green court’s £54m penalty

Since the “dieselgate” scandal became public, VW has set aside about £22.84 billion to cover fines, vehicle refits to remove the illegal “defeat device” software and other costs (Photo: SAJJAD HUSSAIN/AFP/Getty Images).

By: Radhakrishna N S

VOLKSWAGEN will challenge a ruling by an Indian environment court that imposed a fine of £54.05 million on the German carmaker for emission violations.

An investigation by the Indian government in 2015 found that Volkswagen had flouted local pollution limits and the company was forced to recall 323,700 cars.

That ruling came two months after it admitted to cheating the US diesel emissions tests

“The Volkswagen Group in India reiterates that all cars from the group are compliant with the emission norms defined in India,” Volkswagen Group India said in a statement.

Volkswagen plans to contest the National Green Tribunal’s (NGT) order at the Supreme Court.

The diesel emissions scandal has been the biggest business crisis in Volkswagen’s 82-year history.

Since the “dieselgate” scandal became public, VW has set aside about £22.84 billion to cover fines, vehicle refits to remove the illegal “defeat device” software and other costs.

In January NGT fined Volkswagen £10.88m in a separate case relating to excess emissions of nitrogen oxide, a smog-forming pollutant linked to lung and heart disease.

Volkswagen had responded by saying its cars complied with India’s emissions regulations, but it would comply with the order and pay the fine.

(Reuters)