NEW DELHI: German auto major Volkswagen, which was recently slapped with a Rs 500 crore fine by the National Green Tribunal (NGT), received relief on Monday as the Supreme Court stayed the penalty and said no coercive step be taken against the company until it has heard the case.
“In the meantime, no coercive steps shall be taken against the appellant viz., Volkswagen India Private Limited,” a bench of justices S A Bobde and S Abdul Nazeer said. The court also agreed to hear Volkswagen’s plea against the NGT penalty.
The bench was hearing separate appeals filed by the auto major against the March 7 order of the tribunal imposing the Rs 500-crore fine.
Senior advocate Abhishek Manu Singhvi, appearing for the auto major, said that the company was being penalised on the basis of a set of laws that did not exist. Sighvi added that he suspected the firm had been victimised at the behest of its competitors.
Earlier in March, NGT had slapped the fine on Volkswagen for damaging the environment through the use of “cheat devices” in its diesel cars sold in India, and directed the car maker to deposit the amount within two months. The tribunal had enhanced the compensation of Rs 171.34 crore recommended by a NGT-appointed committee.