NGT directs Volkswagen to pay 100 cr deposit by 5 pm tomorrow to avoid arrest of Directors

After Volkswagen failed to pay up a Rs 100 crore deposit in an ongoing case concerning the violation of pollution emission standards, the National Green Tribunal (NGT) today warned that it would order the arrest of the company’s directors if the deposit is not made by 5 pm tomorrow..The matter stems from the 2015 emission scandal, where Volkswagen was found to have used ‘deceit devices’ in its vehicles which allowed the emission of the polluting Nitrous Oxide well over the prescribed pollution emission standards..The same year, the Automotive Research Association of India (ARAI) found that in India, the tested Volkswagen vehicles emitted pollutants five to nine times in excess of the permitted levels..Subsequently, the NGT was approached by various private petitioners including schoolteacher Saloni Ailawadi, to ban vehicles by the German manufacturer, in view of its alleged violation of pollution control norms..After hearing the matter at length, on November 16, 2018, an NGT Bench headed by Chairperson AK Goel had directed Volkswagen to deposit an amount of Rs 100 crore with the Central Pollution Control Board (CPCB) within a month..The Bench passed the order after noting that it was difficult to accept Volkswagen’s stand that it had not caused any damage, given that the company itself had acceded to directions for the recall of its vehicles, and that it had earlier aired public expressions of regret over the emissions scandal. The order states,.“Though, they [Volkswagen] have chosen to describe the recall as voluntary, it is in pursuance of the direction of the Ministry of Hecy Industries.. Moreover…ARAI found NOx emission to be five to nine times higher that the laboratory limits….Even though the standards may be stricter in other countries, they very fact of deceit devices being installed by the manufacturers calls for an inference of prima facie violation of norms, the manufacturer cannot avoid responsibility.“.By the same order, the NGT had also constituted a panel comprising representatives of the CPCB, the Ministry of Heavy Industries, the ARAI and NEERI to examine the ARAI report and submit its opinion on it. The expert panel recently concluded that Volkswagen was liable to pay Rs 171 crore for the air pollution caused by its over-emissions..Volkswagen challenged the NGT directions before the Supreme Court. However, the NGT-directed time period to pay up the said deposit originally expired on December 15, 2018 and there was no extension of the said period by the Supreme Court..Speaking to Bar & Bench, advocate Sanjeev Ailawadi, who appears for the applicant-side, pointed out,.“You will find that the NGT never imposed any penalty. They had only imposed a deposit just to ensure that the directors and key officials remain present on the consequent dates.“.He also commented that it was unfortunate that the government is not taking the initiative to act against Volkswagen, despite it having admitted its guilt across the globe. He said,.“It is a very unfortunate scenario that this company which has admitted to its guilt all across the globe, has paid penalties – in India, the government authorities have not taken [the initiative]…it is only the private citizens who have been forced to rush after them..And we are suffering personal tragedies…The fact remains that we are living a horrible life, courtesy the fact that our regulatory regime and private companies have not taken any responsibility for the kind of third-world technology that has been dumped upon us. The government is not even aware, scientifically, technologically what has been done against its citizens.”.Read the NGT order dated November 16, 2018: