South Korean tech giants LG and Samsung have filed legal petitions against the Indian government, challenging a newly introduced e-waste recycling regulation that mandates a minimum payout to recyclers, reportedReuters. The two firms join a growing list of domestic and international electronics manufacturers contesting the policy on the grounds of its potential financial burden and inefficiency.
Which firms joined the legal battle
According to the wire services, the Delhi High Court is scheduled to hear the matter on Tuesday, alongside similar petitions filed by Daikin, Voltas (a Tata Group company), Havells, and Blue Star. The court submissions, reviewed by Reuters, reveal mounting industry resistance to a regulation that aims to overhaul India’s largely informal e-waste recycling sector.
All about the case
Reportedly, the contentious rule, part of India’s broader e-waste management policy, requires electronics companies to pay a fixed minimum of ₹22 (approximately 25 US cents) per kilogram to authorised recyclers. The government says this move is intended to encourage more formal investment and regulation in a sector currently dominated by unregistered scrap dealers, who account for around 80 per cent of the activity.
India ranks as the world’s third-largest generator of electronic waste, after China and the United States. However, official data indicates that only 43 per cent of this waste was formally recycled in the past year. The Environment Ministry, which drafted the new regulation, has not publicly commented on the ongoing legal challenges.
In its 550-page submission, LG contends that the regulation unfairly penalises manufacturers under the guise of the “polluter pays” principle, while failing to address the lack of regulation in the informal recycling sector. “If the authorities have not been able to regulate the informal sector, then it is an enforcement failure,” the company argues.
Samsung echoed similar concerns in its own 345-page court filing, stating that the policy “does not inherently serve the purposes of environmental protection” and would impose significant financial strain on manufacturers. The firm also claimed that the mandated payout was “5–15 times” higher than current market rates.
Both companies reportedly made prior representations to the government. LG had written to the authorities in August 2024, urging them to reduce the proposed rate and allow market dynamics to determine fair pricing. Samsung, meanwhile, had appealed directly to the Prime Minister’s Office, warning of the regulation’s potential impact on its operations in India.
Indian manufacturer Blue Star has also filed a suit challenging the rules, citing “compliance burdens”, while Johnson Controls-Hitachi appears to have withdrawn its petition without providing reasons.
(With inputs from Reuters)
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