Indian government orders audit of e-waste recyclers to stop fake documents

The Indian government has ordered audits of all recyclers to eliminate false claims and fake paperwork by e-waste recyclers. According to a Business Standard report, these measures have tightened oversight of a sector that manages waste from companies such as Apple, Samsung, and LG.

Prime Minister Narendra Modi's government issued this confidential audit order in July. This decision comes after a federal investigation revealed that appliance manufacturing companies such as Haier and Godrej & Boyce had failed to identify fake compliance documents provided by a recycler that had, in fact, performed no e-waste work. Both companies have stated that they are committed to legal compliance.

According to a Reuters report, this investigation has increased anxiety in India's $95-billion consumer electronics market, and many companies have begun internal reviews of their recycling supply chains. In a July letter, Amandeep Garg, Chairman of the Central Pollution Control Board, ordered all states to begin inspections of more than 2,000 recyclers, of which 309 specifically handle e-waste. The letter indicates that one-third of e-waste recycler units are located in the state of Uttar Pradesh.

India ranks third in the production of electronic waste after China and the USA. The government is concerned that 78% of discarded electronic items are processed by informal scrap dealers who use methods that damage the environment. E-waste includes smartphones, computers, televisions, and household appliances, which contain hazardous substances such as lead and mercury as well as precious metals like gold and silver, requiring specialist recycling.

Independent e-waste expert A.L.N. Rao stated that while the industry has grown rapidly, it had very little oversight in the past, making this audit the government's first major step. He added that this strict oversight will remove operators who do not comply with rules and create a level playing field for genuine recyclers.

Since 2022, the Modi government has told companies to recycle a certain portion of the products they sell every year. To fulfill this responsibility, companies purchase 'Extended Producer Responsibility' (EPR) compliance certificates from recyclers who actually perform the work. However, a report published by a government think tank in January warned that some recyclers were issuing fake certificates.

The Central Pollution Board, along with the July order, has provided a strict procedural document identified as an 'audit campaign'. This document demands physical inspections, such as verification of machinery and trial runs of the plant, as well as comparing production claims with electricity consumption. The Board has clarified that any fake or manipulated documents will be considered a 'major violation', and in such cases, the unit will be stopped from generating EPR certificates.

An executive of an e-waste plant told Reuters that they were inspected earlier this year under these strict guidelines. Three officials conducted a surprise visit to their plant, asked a 46-point questionnaire, and checked electricity bills and machine operations. He stated that this was the first time such an event had occurred in the plant's three-year operation.

Due to rapid urbanisation and increasing income, India has become an attractive market for foreign and domestic appliance and phone manufacturers, resulting in a major surge in electronics sales and e-waste.