Volkswagen says cars compliant with India emission norms but will deposit penalty

NEW DELHI (Reuters) - German carmaker Volkswagen AG said on Thursday that its cars are compliant with India's emission norms but it will still deposit a penalty of 1 billion rupees ($14.08 million) as directed by the country's green court.

India's pollution court on Thursday asked the car maker to deposit 1 billion rupees by Friday failing which could cause punitive actions including the arrest of its country head and the seizure of its properties, local television channels said.

Volkswagen in its statement said the order by the National Green Tribunal (NGT) ordering the penalty is being challenged in the Supreme Court but the company will still deposit the money.

"The Volkswagen Group India will comply with the order of NGT and deposit the money, as directed," Volkswagen Group India spokesman said.

($1 = 71.0400 Indian rupees)

(Reporting by Aditi Shah; Editing by Swati Bhat)