{"id":215179,"date":"2019-05-30T15:30:44","date_gmt":"2019-05-30T10:00:44","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=215179"},"modified":"2019-06-14T15:55:40","modified_gmt":"2019-06-14T10:25:40","slug":"ngt-volkswagen-emission-scam-polluter-pays-principle-does-not-mean-that-polluter-can-pollute-and-then-pay-for-it-must-include-environmental-cost-and-direct-cost-to-peop","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/05\/30\/ngt-volkswagen-emission-scam-polluter-pays-principle-does-not-mean-that-polluter-can-pollute-and-then-pay-for-it-must-include-environmental-cost-and-direct-cost-to-peop\/","title":{"rendered":"NGT | \u2018Polluter Pays\u2019 principle does not mean that polluter can pollute and then pay for it \u2013 Must include environmental cost and direct cost to people"},"content":{"rendered":"

National Green Tribunal:<\/strong> A Coram of Justice A.K. Goel (Chairperson), Justice S.P. Wangdi (Judicial Member), Justice K. Ramakrishnan (Judicial Member) and Dr Nagin Nanda (Expert Member) disposed of an application filed against Volkswagen India Private Ltd. after imposing a fine of Rs 500 crores on it.<\/p>\n

This application had been filed before the Tribunal alleging that engines manufactured by Volkswagen have been found to be in violation of norms in USA and Europe on account of the employment of \u2018cheat devices\u2019, defeating the test of the actual state of affairs. This matter was famous by the name of \u2018Volkswagen Emission Scandal\u2019 globally. In September 2015, it came to light that Volkswagen had installed \u2018cheat devices\u2019 in engines of thousands of their vehicles since 2009. The software helped make the cars meet exhaust pollution standards when monitored in tests but in real, the emissions exceeded the limits. As per reports, the scandal has so far cost Volkswagen more than 26 billion Euros in fines, compensation and buyback.<\/p>\n

The learned counsels for the applicant Sanjeev Ailawadi, Vipul Ganda and Preeti Nain brought to notice of the Tribunal various evidences which were relied upon by the applicant- \u201cstatement before the Lok Sabha on 11-04-2017, result of testing by Automotive Research Association of India (ARAI), notice issued by the US Environment Protection Agency (USEPA), news item dated 05-11-2015 in Business Standard under the heading \u201cVolkswagen fails emission test in India\u201d, news item dated 28-09-2015 in the Economic Times under the heading \u201cTimeline of events in Volkswagen pollution cheating scandal\u201d and statement on behalf of Ministry of Heavy Industries in the counter affidavit stand of the manufacturers\u201d<\/em>.<\/p>\n

The learned counsels for the respondent\u00a0 Pinaki Mishra, Bishwajit Dubey and Surbhi Khattar raised an objection to the application by saying \u201cthat the manufactures have been found to be compliant of the regulatory environmental norms. In view of this conclusion, there being no norms prescribed for on-road testing, manufacturers cannot be held to be noncompliant in any manner.<\/em>\u201d They further made reference to Notification dated 16-09-2016 issued by the Ministry of Road Transport and Highways under Section 212 of the Motor Vehicles Act, 1988 laying down that PEMS (Portable Emission Measurement System) can be used. It is submitted that this provision has been introduced for the first time on the said date. The same could not be applied in the present case prior to Notification.<\/p>\n

After hearing both the sides, Tribunal observed that it cannot accept the objections to the report raised on behalf of the manufacturers. The report categorically finds the use of cheat device and violation of norms at the time of road testing. It has also been found that nitrogen oxides (NOx) emission in certain models of Volkswagen were higher than the other Indian vehicles tested using the same protocol which was corrected during the recall of vehicles under the supervision of ARAI.\u00a0 It also observed that the \u2018Precautionary Principle\u2019 and \u2018Sustainable Development\u2019 principle are part of Article 21 of the Constitution of India and Section 20 of the National Green Tribunal Act, 2010. \u2018Polluter Pays\u2019 principle does not mean polluter can pollute and pay for it. It would include environmental cost as well as a direct cost to people. Thus, the Tribunal imposed a fine of Rs 500 crores on Volkswagen.[Saloni Ailawadi v. Volkswagen India (P) Ltd., 2019 SCC OnLine NGT 69<\/b><\/a>, decided on 07-03-2019]<\/p>\n","protected":false},"excerpt":{"rendered":"

National Green Tribunal: A Coram of Justice A.K. Goel (Chairperson), Justice S.P. Wangdi (Judicial Member), Justice K. Ramakrishnan (Judicial Member) and Dr <\/p>\n","protected":false},"author":8808,"featured_media":198968,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[35734,8081,24844,35735,3346,35733],"class_list":["post-215179","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-article-21-of-constitution","tag-polluter-pays-principle","tag-precautionary-principle","tag-section-20-national-green-tribunal-act","tag-sustainable_development","tag-volkswagen-emission"],"yoast_head":"\nNGT | \u2018Polluter Pays\u2019 principle does not mean that polluter can pollute and then pay for it \u2013 Must include environmental cost and direct cost to people | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2019\/05\/30\/ngt-volkswagen-emission-scam-polluter-pays-principle-does-not-mean-that-polluter-can-pollute-and-then-pay-for-it-must-include-environmental-cost-and-direct-cost-to-peop\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NGT | \u2018Polluter Pays\u2019 principle does not mean that polluter can pollute and then pay for it \u2013 Must include environmental cost and direct cost to people\" \/>\n<meta property=\"og:description\" content=\"National Green Tribunal: A Coram of Justice A.K. 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2021","format":false,"excerpt":"National Green Tribunal (NGT): The Coram of Justice Adarsh Kumar Goel (Chairperson) and Justice Sudhir Agarwal, Justice Brijesh Sethi (Judicial Members) and Dr Nagin Nanda (Expert Member), addressed a matter wherein it was alleged that a forest guard was mowed down by mining mafia in Sariska Tiger Reserve. 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Tribunal directs closure of plant","author":"Bhumika Indulia","date":"November 4, 2020","format":false,"excerpt":"National Green Tribunal (NGT): The Bench of Justice Adarsh Kumar Goel (Chairperson) and Justice Sheo Kumar Singh (Judicial Member), Dr Satyawan Singh Garbyal and Dr Nagin Nanda (Exper Members) directs closure of garbage processing plant by Pune Municipal Corporation and to shift the same at any other place in light\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"NGT","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/07\/NGT.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/07\/NGT.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/07\/NGT.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/07\/NGT.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/07\/NGT.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":205827,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/11\/28\/state-of-punjab-ordered-to-pay-50-crores-for-damage-to-rivers-sutlej-and-beas-and-prepare-action-plan-to-restore-water-quality\/","url_meta":{"origin":215179,"position":4},"title":"State of Punjab ordered to pay 50 crores for damage to rivers Sutlej and Beas and prepare action plan to restore water quality","author":"Bhumika Indulia","date":"November 28, 2018","format":false,"excerpt":"National Green Tribunal: The NGT bench comprising of Adarsh Kumar Goel (Chairperson), S.P. Wangdi (Judicial Member) and Dr Nagin Nanda (Expert Member) on the \u201cpolluter pays\u201d principle directed the State to pay a sum of 50 crore for the damage caused to river Sutlej and Beas. 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