India has ordered audits of all electronic waste recyclers to eradicate inflated processing claims and forged paperwork, government documents show, tightening scrutiny of a sector that handles waste for companies such as LG, Apple and Samsung.
India, the third-biggest generator of electronic waste after China and the US, is concerned that 78% of the waste from discarded electronic goods is processed by informal scrap dealers who use methods that harm the environment.
Electronic waste includes discarded smartphones, computers, televisions and home appliances and needs specialist recycling to handle hazardous substances such as lead and mercury, as well as precious metals like gold and silver.
Prime Minister Narendra Modi's government issued the confidential audit order in July. It coincided with a federal investigation that found appliance makers Haier and Godrej & Boyce had failed to detect fake compliance documents issued by a recycler who did no electronic waste work.
Both companies have said they are committed to legal compliance.
That investigation had already raised alarm in India's $95-billion consumer electronics market, with many companies launching internal reviews of recycling supply chains, Reuters reported.
In the July letter, seen by Reuters, Central Pollution Control Board Chairman Amandeep Garg ordered all states to start inspections at more than 2,000 recyclers, including 309 that specifically manage electronic waste.
The letter showed that a third of the electronic waste recyclers are located in India's most populous state of Uttar Pradesh.
The pollution body did not respond to Reuters requests for comment. Apple, Samsung and LG also did not respond to questions about their electronic waste partners and the planned audits.
The audits, which Reuters is the first to report, are the government's first major measure for the electronic waste industry, which has grown rapidly but faced little scrutiny in the past, A.L.N. Rao, an independent electronic waste expert who advises electronics companies, said.
"This rigorous oversight will finally weed out non-compliant operators and establish a strong, level playing field for genuine recyclers to thrive," said Rao.
Plant and electricity consumption checks
Since 2022, Modi's government has asked companies to recycle a share of the products they sell each year, but they meet those obligations by buying Extended Producer Responsibility (EPR) compliance certificates from recyclers who do the actual work.
In January, a report published by a government think tank warned some recyclers were issuing “fraudulent certification”.
The federal pollution board issued a strict procedure document for states along with its July order, which it described as an "audit campaign". The document calls for physical checks such as the verification of machinery and trial runs of the plant, as well as comparisons of electricity consumption with production claims.
The board will consider any forged or manipulated documents as a “major violation”, the document said, adding the unit will be blocked from generating EPR certificates in such cases.
Surprise plant visits
One executive at an Indian electronic waste plant told Reuters he faced scrutiny earlier this year, even before stricter guidelines were enforced. Three officials made a surprise visit to his plant with a 46-point questionnaire, checked his electricity bills and how the machines worked.
"This had never happened in the plant’s three years of operation," he said on the condition of anonymity.
Rapid urbanisation and higher disposable incomes make India an attractive market for foreign and domestic appliance and phone makers, leading to a surge in sales of electronics, as well as electronic waste.
In Uttar Pradesh, the state pollution board on September 18 appointed regional officers for the audits, with 33 electronic waste recyclers to face immediate audits, a letter showed. Four of them provide services to Samsung, according to the company's India website.
A senior state official told Reuters on Thursday the audits are ongoing.
