German carmaker Volkswagen Group, which has been accused of using emission cheating devices in its vehicles in India by the National Green Tribunal (NGT), has been ordered to pay a penalty of Rs 500 crore.

The tribunal increased the compensation amount of Rs 171.34 crore in January 2019, which was recommended by a NGT- appointed committee in January, as a means of "creating deterrence". However, Volkswagen had argued that it did not violate the BS-IV norms and that the test results were based on 'on road testings' for which there were no prescribed standards.

In response to the order, the carmaker has said it will challenge the ruling and claims its vehicles meet the law of the land. "The Volkswagen Group in India reiterates that all cars from the group are compliant with the emission norms defined in India. The Group awaits the copy of the order of Honourable NGT. The Volkswagen Group will challenge the order of the Honourable NGT before the Honourable Supreme Court,”  said a spokesperson  for Volkswagen Group India.