While the green panel sought an undertaking from the car -maker by January 11 that it would sell only those vehicles which comply with all emission norms as applicable, the Ministry of Heavy Industries said it was considering penal action against Volkswagen for flouting emission norms.
Cheat or defeat device is a software in diesel engines to manipulate emission tests by changing the performance of the vehicles to improve results.
An affidavit filed by Ministry of Heavy Industries before a bench of Justice U D Salvi said the ministry of "had directed Volkswagen to initiate vehicle recall in India. ... Volkswagen had informed that they will be recalling all affected vehicles estimated number being 3.2 lakhs in India...
"On declaration of vehicle recall by the manufacturer, Ministry of Heavy Industries has immediately handed over the matter to Ministry of Road Transport and Highways to examine penal provisions and decide further action related to continuation or otherwise of production and the applicable penalty."
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A Delhi-based school teacher and a few other residents had moved the Tribunal seeking directions to disallow "manufacturing, assembly and sale" of vehicles manufactured by Volkswagen and its group companies until it was established that they were adhering to the prescribed norms in India.
Senior advocate Pinaki Misra, appearing for the car- maker, told the green panel that there were no such devices in its vehicles and ARAI was already investigating the matter and its outcome was awaited.
Responding to the National Green Tribunal (NGT) order asking it to give an undertaking that it would sell only those vehicles which comply with all emission norms as applicable, the company later said its vehicles are not violating Bharat Stage IV (BS IV) emission norms in India.
"Volkswagen Group India has already intimated why it believes that its cars are not equipped with a 'defeat device'," a company spokesperson said in a statement.