FIRST INTERNAL ASSESSMENT ON

ENVIRONMENTAL LAW

CASE ANALYSIS OF :

SATVINDERJEET SINGH SODHI & ORS V. VOLKSWAGEN

INDIA PRIVATE LIMITED & ORS

SUBMITTED BY:

ANUJ MAHESHWARI JYOTIRADITYA BHAT

22010126231 22010126242
DIVISION C
YEAR I, B.B.A. LLB. (HONS.)

SEMESTER II

(WORD COUNT EXCLUDING COVER PAGE, INDEX, HEADINGS, FOOTNOTES, AND REFERENCES: 2511)
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TABLE OF CONTENTS

ABSTRACT.........................................................................................................3

INTRODUCTION..............................................................................................3

RATVINDERJEET SINGH SODHI & ORS V. VOLKSWAGEN INDIA

PRIVATE LIMITED & ORS............................................................................4

BACKGROUND AND FACTS OF THE CASE..........................................................4

INVESTIGATION..................................................................................................5
CRITICAL ANALYSIS..........................................................................................6
VERDICT.............................................................................................................7

LEGISLATIONS AND POLICIES..................................................................7

CONCLUSION...................................................................................................8

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ABSTRACT
In 2015, a group of individuals, led by Ratvinderjeet Singh Sodhi, filed a case against
Volkswagen India Private Limited and others in the National Green Tribunal. The plaintiffs
alleged that the company had installed "defeat devices" in its diesel cars to manipulate
emission tests. This fraudulent practice resulted in the release of excessive nitrogen oxide
(NOx) emissions into the environment, causing severe environmental damage and posing a
risk to public health.

The case raised several critical issues, including the effectiveness of India's emission testing
regime, the accountability of car manufacturers for the environmental impact of their
products, and the appropriate compensation for the harm caused. The plaintiffs demanded
compensation for the environmental damage caused by the polluting cars and urged the court
to order Volkswagen to recall all the affected vehicles and compensate the owners.
Volkswagen India Private Limited initially denied the allegations and argued that the Indian
emission standards were not as strict as in other countries, which allowed the company to use
the defeat devices legally. However, the company eventually admitted to using the devices
and agreed to recall all the affected vehicles in India and globally. The Indian government
also imposed a fine of Rs. 171.34 crore on the company for violating emission norms. The
case highlighted the need for stricter environmental regulations and enforcement mechanisms
to prevent such fraudulent practices by the automobile industry. It also brought attention to
the importance of corporate responsibility to mitigate the adverse effects of industrial
activities on the environment and public health.

The case serves as a critical example of the growing significance of environmental concerns
in India's legal system and the need for increased accountability and transparency in the
automotive industry. In conclusion, the Ratvinderjeet Singh Sodhi & Ors V. Volkswagen
India Private Limited & Ors case is an important milestone in the fight against environmental
damage caused by fraudulent practices in the automobile industry. The case resulted in
stricter regulations, accountability for the company, and compensation for the affected
individuals. It also serves as a reminder that the protection of the environment and public
health should be a top priority for companies and governments alike.

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INTRODUCTION

On October 18, 2010, the National Green Tribunal was established by the National Green
Tribunal Act 2010 in order to provide for the prompt and efficient resolution of disputes
involving the protection and conservation of the environment, including the enforcement of
any legal right relating to the environment, the provision of relief and compensation for
damages to persons and property, and any other matters connected therewith or incidental
thereto. It is a specialized group with the knowledge and resources to resolve environmental
conflicts involving multi-disciplinary issues. With its exclusive jurisdiction over
environmental cases, the Tribunal will speed up the delivery of environmental justice and
lighten the load on higher courts. One such case is the case of Satvinderjeet Singh Sodhi &
Ors. versus Volkswagen India Private Limited & Ors. 1 which is a class-action lawsuit filed by
a group of Volkswagen car owners in India, alleging that the company had installed
emissions-cheating software in their vehicles, which violated environmental regulations and
caused harm to the environment and public health. In November 2018, a case was filed in
India's National Green Tribunal (NGT) demanding restitution and a stop to the sale of
Volkswagen vehicles until they met stricter emissions regulations. Volkswagen was accused
of breaking two Indian laws, the Air (Prevention and Control of Pollution) Act of 1981 2 and
the Environment (Protection) Act of 19863.

The case of Satvinderjeet Singh Sodhi and others versus Volkswagen India Private Limited
and others is notable because it is the first time in India that a class-action lawsuit has been
launched against an automotive manufacturer for breaking environmental laws. This case
demonstrates both how important it is for environmental standards to be strictly enforced as
well as how necessary it is for businesses to be held accountable for the acts they take. In
addition to this, it highlights the importance of the judicial system in the protection of the
public health and the environment.

RATVINDERJEET SINGH SODHI & ORS V. VOLKSWAGEN INDIA PRIVATE

LIMITED & ORS

1
Satvinderjeet Singh Sodhi & Ors. versus Volkswagen India Private Limited & Ors (2019) 11 SCC 415.
2
Air (Prevention and Control of Pollution) Act of 1981
3
Environment (Protection) Act of 1986

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BACKGROUND AND FACTS OF THE CASE

The Environmental Protection Agency (EPA) of the United States sent a notice of violation to
Volkswagen Group in September 2015, accusing the business of placing "defeat devices" in
their diesel-powered vehicles in order to cheat on emissions tests. The allegations were made
public in October of that same year. The software was able to detect when the vehicle was
being tested and cut the emissions output accordingly; but, when the vehicle was being driven
normally, the emissions were far higher than the permissible level. As the scandal unfolded,
Volkswagen admitted to installing the defeat devices in millions of cars worldwide, including
in India. As a reaction, the Indian government issued a directive to conduct an inquiry and
requested that Volkswagen retrieve and repair more than 300,000 vehicles across the nation
due to an emissions problem.

In November of 2018, a group of Volkswagen automobile owners in India filed a class-action

lawsuit against Volkswagen at India's National Green Tribunal, stating that Volkswagen had
breached environmental standards and caused harm to the environment and public health.
The complaint was launched against Volkswagen in the name of all Volkswagen car owners
in India. The complaint sought compensation as well as a prohibition on Volkswagen
vehicles being sold in India until such time that they met the required emissions standards.

INVESTIGATION

A joint team consisting of representatives from the Central Pollution Control Board (CPCB),
the Ministry of Heavy Industries under the Government of India, Automotive Research
Association of India, and NEERI had been established by the Tribunal in order to provide an
expert judgement regarding whether or not the specified norms have been exceeded and the
level of damage that had been caused. Additionally, the Tribunal ordered that an amount
equal to one hundred crore rupees had to be deposited with the Central Pollution Control
Board (CPCB), which was to comply with subsequent direction from the Tribunal. The court
took note of the fact that the corporation had a net value of 75 billion US dollars.

The Automotive Research Association of India employed a validated process with the
Portable Emission Measurement System (PEMS), which is a system that is utilized all over
the world to measure Real Driving Emissions (RDE). The research reveals that there is an
excessive amount of NOx in road emissions in comparison to the laboratory values.

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Concerning the position of the manufacturer, it was revealed during these tests that the NOx
emissions, as measured by PEMS equipment, were found to be 1.1 to 4.06 times higher than
the BS-IV emission standard. This is in contrast to Volkswagen's claim that the NOx
emissions were only 1.1 to 2.6 times higher than the BS-IV emission limit. The Committee
observed that – “Volkswagen used two different strategies for EGR rate management through
the ECU software. The earlier or original EGR strategy was giving higher emissions under
the warm test cycle as well as that in the field while meeting the emission norms under the
standard cold test conditions. These NOx emissions in certain models of Volkswagen were
also higher than the other Indian vehicles tested using the same protocols. This was later
corrected during the recall of vehicles under the supervision of Automotive Research
Association of India. The VW vehicles after recall gave much less NOx emissions under the
warm test cycle as well.”4

CRITICAL ANALYSIS

The investigation unequivocally concludes that an illegal cheating device was used during the
road test, as well as multiple violations of standards. In addition to this, it was discovered that
the NOx emissions in some models of Volkswagen were significantly higher than the NOx
emissions in other Indian vehicles that were subjected to the same protocol for testing. This
issue was resolved during the recall of vehicles that was carried out under the supervision of
Automotive Research Association of India. Following the recall, Volkswagen vehicles also
produced much lower levels of NOx emissions when subjected to heated test cycles.

Pollution cannot be allowed to be a profitable activity. The environment is priceless.

Intentional violations have to be visited with more stringent damages than accidental or
unintended.5 likewise, we might make the observation that the "Precautionary Principle" and
the "Sustainable Development Principle" are both included in Article 21 6 of the Constitution
as well as Section 207 of the National Green Tribunal Act, which was passed in 2010. The
"Polluter Pays" notion does not mean that polluters are allowed to pollute without paying for
their actions. It would take into account both the direct costs to individuals and the indirect
costs to the environment. The whole cost of restoring environmental degradation is included
in the calculation of environmental costs; these costs are not limited to those that are

4
Supra Note 1
5
Sterlite Industries (India) Ltd. v. Union of India (2013) 4 SCC 575
6
Constitution Of India 1950 A 21
7
National Green Tribunal Act 2010, Section 20

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immediately tangible.If cheat devices that lead to pollution are ignored merely because there
is no procedural routine, then this will be against the norms of environmental law that are
generally acknowledged. Any globally recognized standard of procedural practice may be
followed unless it is clearly or implicitly forbidden in India.

VERDICT

In December 2020, the NGT directed Volkswagen to deposit the penalty amount of Rs
171.34 crore with the CPCB within 24 hours, failing which the company's directors would be
arrested. The NGT also directed Volkswagen to deposit an additional sum of Rs 5 crore
(approx. USD 675,000) as a "token of goodwill" towards the environment.

LEGISLATIONS AND POLICIES

During this 4 yearlong investigation and a yearlong case, there were multiple legislations that
were looked upon, many policies of the government that were criticized and multiple cases
reviewed for a better review.

In an effort to reduce global average business emissions, the Corporate Average Fuel
Efficiency/ Economy (CAFÉ) criteria were developed in 2017. These are applicable to
automakers and are encouraged by either raising fuel efficiency or lowering fuel
consumption. Both assist in lowering CO2 while lowering the nation's reliance on fuel
imports and its vehicle emissions. In accordance with this standard, corporate average CO2
emissions must be fewer than 130 g/km for phase I (up until 2022) and less than 113 g/km for
phase II (after 2022).

The initial Bharat Stage (BS) rules were implemented in 2000 and have since undergone
numerous revisions. The Central Pollution Control Board of India established these
requirements, and all automakers are required by law to only sell automobiles that adhere to
these regulations. These standards strive to tighten rules by lowering the allowable amount of
tailpipe pollutants with each subsequent revision. For instance, the 2017-introduced BS-IV 8
standard permitted 50 parts per million (ppm) of sulfur. In every couple of years the
government comes with new Bharat Stage which deals with the emissions that are allowed by

8
CPCB | Central Pollution Control Board

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the government. It was in 2020 that the government came with the BS-VI 9 which revised the
rate at which emissions can be allowed by the government and was reduced to 113 gm/km
post 2022. This initiative by the government has got every car manufacturer in order and has
not given any automotive company any chance to flunk the rules as their cars can only be
sold in India if it passes the tests set by the government in accordance to the Bharat Stage.

The Motor Vehicles Act, 198810 was another legislation that was in the picture during this
trial as this is the act that takes care of all the registration and emission of vehicles in India.
During this trial the talks of amending this act up-rose as it was thought that complicate the
registration process would lead to customers being more aware of their vehicles and learning
how to not only check the emissions of their car but also keep them in control in order to
reduce the harm done to the environment.

The SDG that pertains to reducing emissions from motor vehicles is SDG 13, which focuses
on taking action to combat climate change. The objective is to enhance the capacity to
withstand climate-related hazards and natural disasters in all nations. In this context,
minimizing emissions from vehicles is a key factor in mitigating the impacts of climate
change. The promotion of low-emission vehicles, such as electric and hybrid vehicles, and
the encouragement of the use of public transportation, cycling, and walking can help achieve
this objective. Effective implementation of policies and regulations that incentivize the
adoption of low-emission vehicles and encourage the development of sustainable
transportation systems is vital to achieving SDG 13. Additionally, supporting research and
development of innovative technologies that reduce emissions from motor vehicles and
promote renewable energy sources can aid in achieving this goal. Ultimately, reducing
emissions from motor vehicles is a crucial step towards achieving SDG 13 and building a
sustainable future for all.

CONCLUSION

Finally, the question in Satvinderjeet Singh Sodhi & Ors. v. Volkswagen India Private
Limited & Ors. is whether Volkswagen India Private Limited breached Indian emission
norms and consumer protection legislation. According to the evidence given, the companies

9
File4475_0.pdf (morth.nic.in)
10
Motor Vehicles Act, 1988

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in question did place "defeat devices" in their diesel vehicles, allowing the vehicles to cheat
on emissions testing while generating higher levels of pollutants under regular driving
situations. This is a violation of Indian emission rules as well as consumer protection laws.

The plaintiffs in this case have a genuine claim for compensation for the damages they
suffered as a result of purchasing defective vehicles, and the corporations cannot use the
defense of time-barred claims or a lack of locus standi. As a result, the court may hold
Volkswagen India Private Limited and Skoda Auto India Private Limited accountable for
their actions and pay the plaintiffs compensation. Here are some suggestions and critical
reflections on the case:

1. Speedy resolution: The case has been ongoing for several years, and the court must
ensure that it is resolved as soon as possible. The plaintiffs may suffer severe loss as a
result of the delay, and justice delayed is justice denied.
2. Compensation: Because of Volkswagen's fraudulent acts, the plaintiffs have suffered
damages and are entitled to compensation. The court should make certain that the
compensation is fair and just, and that it takes into consideration the magnitude of the
injury inflicted.
3. Deterrent effect: The court's verdict should prevent other corporations from engaging
in similar fraudulent acts. This will assist to protect consumers and the environment in
the future.
4. Corporate accountability: The case emphasises the importance of greater corporate
accountability in India. The government should take steps to hold firms accountable
for their activities and enforce appropriate consequences for any misbehaviour.
5. Customer awareness: The instance emphasises the significance of customer
awareness. Consumers should be informed of their rights and take precautions to
protect themselves from fraudulent business practises.
6. Environmental impact: The emissions scandal has had a substantial environmental
impact, and when making its ruling, the court should consider the environmental
impact of Volkswagen's conduct.
7. Regulators' role: The case also raises concerns about the role of regulators in India.
The government should guarantee that regulators are sufficiently paid and have the
resources they need to carry out their responsibilities.

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