Six months into 'Dieselgate' scandal, gloom deepens in Volkswagen's hometownReuters

Alarmed by one of the biggest scandals in global auto industry, the Indian government has ordered a probe into German carmaker Volkswagen to ascertain if the company has violated rules to get emission test clearances in India as it did in the US.

The government has asked Automotive Research Association of India (ARAI) to investigate the matter, as the emission test scandal by Volkswagen is reported to have hit 11 million of its cars worldwide.

"We have requested the Automotive Research Association of India (ARAI) to check with Volkswagen and find if this issue is applicable over here. They are inquiring into the matter," PTI quoted heavy industries secretary Rajan Katoch as saying. 

However, a spokesperson for the Volkswagen group said that he was "not aware" of the government's move.

"I cannot comment on any such development. We are not aware of this development," the spokesperson said.

The car maker said that it would allocate funds worth $7.3 billion in the third quarter to cover the damages resulting out of the biggest scandal in its 78-year-history.

But the US Environmental Protection Agency (EPA) said last week that Volkswagen may need to pay penalties to the tune of $18 billion.

After the company disclosed that it had used a software to deceive US regulators in getting emission clearances for some of its diesel models, many other countries have started probing if the company violated rules using similar methods in other regions as well. 

On Wednesday, Martin Winterkorn resigned as the CEO of Volkswagen following the scandal.

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