India's environmental court slaps 71.5 million USD fine on Volkswagen

India's environmental court the National Green Tribunal (NGT) on Thursday imposed a fine of 71.5 million U.S. dollars on German auto maker Volkswagen for damaging environment through the use of "cheat device" in its diesel cars for India, officials said.

The German carmaker was asked to deposit the fine within two months.

"NGT today slapped a fine of INR 500 Crore (71.5 million dollars) on Volkswagen for damaging the environment by using cheat device in its diesel cars in India," an official said.

"The NGT bench headed by chairperson Justice Adarsh Kumar Goel directed the carmaker to deposit the amount within two months."

The NGT said the apex pollution monitoring body may consider utilising the money towards improving air quality in the National Capital Region and other highly polluted areas.

On Nov. 16 last year, NGT said the use of "cheat device" by Volkswagen in its diesel cars in India leads to inference of environmental damage and had asked the German auto maker to deposit an interim amount 14.07 million U.S. dollars with the Central Pollution Control Board.

Volkswagen is likely to contest the NGT order in India's Supreme Court.