Claiming soaring costs and unfair policies could hurt business and fail to fix waste issues, tech giants LG and Samsung sue India over fixed recycling rates.
LG and Samsung have filed lawsuits against the Indian government, opposing a new electronic waste recycling pricing policy. According to an exclusive report by Reuters, these cases will be heard in Delhi High Court alongside similar legal actions by other companies.
The South Korean tech giants are contesting rules that require firms to pay a fixed minimum rate of ₹22 per kilogram for recycling electronic waste. They argue the policy will sharply increase business costs, tripling their recycling expenses, while favouring recyclers.
India, the world’s third-largest e-waste generator after China and the US, introduced the policy to formalise the sector and encourage investment. Currently, 80% of recycling is handled by informal scrap dealers, and only 43% of e-waste is processed properly.
Companies say the government should let market forces decide prices instead of imposing fixed rates. LG described the policy as an unfair financial burden that does not address the root problem of unregulated informal recycling. Samsung echoed this concern, warning of significant financial strain and questioning the regulation’s effectiveness in improving environmental outcomes.
Other companies, including Daikin, Havells, Voltas, Blue Star, and Johnson Controls-Hitachi, have also challenged the rules. While most lawsuits proceed, Johnson Controls-Hitachi recently withdrew its case without explanation.
Despite lobbying efforts, including letters to Prime Minister Narendra Modi and government departments, the Environment Ministry has not publicly responded. Samsung claimed the new rate was five to fifteen times current costs.
Research by Redseer shows India’s recycling rates lag behind global leaders like the US and China. The government maintains that the fixed pricing will help draw more formal players into the sector and improve overall waste management.
As the legal battle unfolds, the outcome may shape the future of e-waste policy and corporate responsibility in India.
