The National Green Tribunal (NGT) has ordered Volkswagen to deposit Rs 100 crore with the central pollution control board (CPCB).
The German auto major is allegedly violating emission norms by using a 'Cheat Device' in emission tests of its diesel vehicles.
'Cheat' or 'Defeat device' is a software in diesel engines to manipulate emission tests by changing the performance of the cars globally.
A plea was filed by Saloni Ailwadi, a school teacher and few others seeking a ban on sale of VW vehicles for alleged violation of emission norms.
Volkswagen had earlier submitted a plan to NGT to recall over 3.23 lakh vehicles in India.
These vehicles were fitted with a 'defeat device' meant to fudge emission tests. Volkswagen has been asked to submit a report within a month and to appear before the panel within seven days.