New Delhi, May 8 -- The Supreme Court (SC) on Monday stayed an order of the National Green Tribunal (NGT) imposing a fine of Rs.500 crore on Volkswagen AG, providing major relief to the German automaker.

The NGT had imposed the fine on Volkswagen for what it called harming the environment.

A bench of the apex court headed by Justice SA Bopde said that 'no coercive action' should be taken against Volkswagen with respect to the fine. The court also sought replies from the Central Pollution Control Board and Saloni Ailawadi, a teacher at a Delhi school who, along with a few others, had moved the green tribunal seeking a ban on the sale of Volkswagen vehicles in India for alleged violation of emission norms.

The NGT on March 7 slapped the Rs...