An employee holds an emblem for a Volkswagen Golf car in a production line at the Volkswagen headquarters in Wolfsburg, Germany. Picture: REUTERS
An employee holds an emblem for a Volkswagen Golf car in a production line at the Volkswagen headquarters in Wolfsburg, Germany. Picture: REUTERS

Bengaluru/New Delhi — Volkswagen (VW) will challenge a ruling by an Indian environment court that imposed a fine of five billion rupees ($71m) on the German car maker for emission violations.

An investigation by the Indian government in 2015 found that VW had flouted local pollution limits and the company was forced to recall 323,700 cars in the country. That ruling came two months after it admitted to cheating 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.

VW 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 VW's 82-year history. Since the “dieselgate” scandal became public, VW has set aside about $30bn to cover fines, vehicle refits to remove the illegal “defeat device” software and other costs.

In January, NGT fined VW one-billion rupees in a separate case relating to excess emissions of nitrogen oxide, a smog-forming pollutant linked to lung and heart disease.

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

Reuters