In November 2018, the National Green Tribunal (NGT) convened an expert panel to report on the environmental impact of Volkswagen's use of a "cheat" or "defeat" devise in its diesel engine cars to manipulate emission tests. Volkswagen admitted using this devise in 2015, and subsequently recalled effected vehicles in India and elsewhere around the world. Volkswagen states that the recall in India was entirely voluntary.

The expert panel released its report in December 2018, calculating the estimated cost of health damage due to the release of excess Nitrous Oxide. The company was ordered to pay an interim fine of Rs 1 billion to the Central Pollution Control Board  (CPCB). The issue of whether Volkswagen violated Indian emission norms is pending before the NGT. The Supreme Court has advised the tribunal to consider expanding its review to other car manufacturers.