Volkswagen will challenge a ruling by the National Green Tribunal (NGT) that imposed a fine of Rs 500 crore rupees ($71 million) on the German carmaker for emission violations.
An investigation by government in 2015 found that Volkswagen had flouted local pollution limits and the company was forced to recall 3,23,700 cars in the country. That ruling came two months after it admitted to cheating US diesel emissions tests.
"The Volkswagen Group in India reiterates that all cars from the group are compliant with the emission norms defined in India," Volkswagen Group India said in a statement.
Volkswagen plans to contest NGT's order at the Supreme Court.
The diesel emissions scandal has been the biggest business crisis in Volkswagen's 82-year history. Since the "dieselgate" scandal became public, Volkswagen has set aside about $30 billion to cover fines, vehicle refits to remove the illegal "defeat device" software and other costs.
In January NGT fined Volkswagen Rs 100 crore in a separate case relating to excess emissions of nitrogen oxide, a smog-forming pollutant linked to lung and heart disease.
Volkswagen had responded by saying its cars complied with country's emissions regulations, but it would comply with the order and pay the fine.