Plea to Quash FIR Over Volkswagen's Alleged Installation of 'cheat device' in Vehicles dismissed by Allahabad HC

Aniljit Singh lodged an FIR against Volkwagen claiming faulty emission standards

Aniljit Singh lodged an FIR against Volkwagen after coming to know that a 2019 NGT (National Green Tribunal) order found Volkswagen guilty of having installed a cheat device' to show lower pollution emissions during laboratory testing. The complaint cited the global emissions scandal where Volkswagen was found to be installing a cheat device in its cars, in the absence of which, the cars produced 10-40 times emissions beyond the permissible limits. 

Mr Singh contends that he was assured that the company had not installed any cheat devices in vehicles meant to be sold in India. However, he later came to be aware of a March 2019 order passed by the NGT, where the Tribunal found Volkswagen guilty of having installed a cheat device' to show lower pollution emissions during laboratory testing. 

 The petitioners prayed for a stay to the entire proceeding 

The petitioners (Rahil Ansari, Brand Director, Audi India, Balbir Singh Dhillon, Head, Audi India, and Bram Schot, Chairman, Audi AG) sought to quash of the FIR dated July 10, 2020, registered as Case Crime no. 0613 of 2020 under various Sections 34, 471, 468, 467, 420, 419 and 406 of the IPC at Police Station Noida Sector 20. The petitioners also prayed for a stay to the entire proceeding.  

FIR is malicious prosecution, Volkswagen to the High Court 

Senior Advocate Naveen Sinha appeared for the Skoda Auto Volkswagen India Pvt. Ltd. and recounted that the NGT had passed an order in March 2019 imposing damages and an amount of compensation amounting to Rs. 500 crores against Audi in its order. Volkswagen had filed an appeal against it in the Supreme Court. The top Court passed an order on May 6, 2019, directing that no coercive steps were to be taken against the company. In view of this interim protection, Volkswagen told the High Court that the FIR was nothing but malicious prosecution and that it could not have been lodged at all.  

Supreme Court’s order doesn’t stop individuals from taking action 

AGA AN Mulla, appearing for respondents (State of U.P., Aniljit Singh and another), stated in his submission that as per the prescribed statutory regime NGT had left it open for the Central Pollution Control Board (CPCB) to initiate prosecution. Therefore, the Supreme Court’s order that coercive action to be taken was confined to any action which may be contemplated by the CPCB. This direction would not operate as a blanket embargo in respect of FIRs lodged by private individual/individuals on allegations that they were cheated by the faulty emission standards declared by the company, which may be found to not satisfy the BS-IV norms. 

 Petition dismissed for lack of merits.  

Noting that the writ petition lacked merit and that the matter requires investigation, the High Court went on to dismiss the petition filed by Volkswagen. While doing so, the bench of Justices B Amit Sthalekar and Shekhar Kumar Yadav remarked, 

 "...we are of the opinion that the question as to whether a 'cheat device' was installed in the vehicles purchased by the respondent no.3 (Aniljit Singh) and whether they satisfy the BS-IV norms or not, is a matter of investigation and the investigation cannot be interfered with by this Court on an erroneous interpretation of the interim order of the Supreme Court. The prayer for quashing the FIR is refused.” 

 The Bench also directed that the petitioners shall not be arrested till the submission of the final police report under Section 173 (2) CrPC, and provided that the petitioners co-operate with the investigation.