LG,Samsung Sue India Over E-Waste Recycling Policy

South Korean electronics giants LG Electronics and Samsung have initiated legal action against the Indian government, challenging a policy that mandates increased payments to e-waste recyclers. This move aligns them with other major corporations that have questioned the impact of India's environmental regulations on businesses.

The court hearings for these lawsuits, along with related challenges, are scheduled for Tuesday, marking an escalation in the conflict between foreign companies and the government led by Prime Minister Narendra Modi over waste management measures.

Neither LG nor Samsung responded to requests for comment, and the Indian Ministry of Environment also did not provide a response. India ranks as the third-largest generator of e-waste, following China and the United States. However, the government reports that only 43% of the country's e-waste was recycled last year, with at least 80% of the industry's workforce consisting of informal waste dealers.

Previously, Daikin, Havells, and Voltas, a subsidiary of the Tata Group, had also filed lawsuits against the Modi government. LG and Samsung had lobbied against the decision to set a minimum price for payments to recyclers, arguing that it was necessary to attract more formal enterprises into the industry and encourage investment in e-waste recycling.

In documents submitted to the Delhi High Court, LG argued that the pricing rules "do not consider that merely taxing and squeezing companies in the name of the 'polluter pays' principle will not achieve the intended goal." The 550-page filing, submitted on April 16, stated, "If the authorities fail to regulate the informal sector, it is a failure of regulation."

Samsung's 345-page filing argued that price controls "in essence do not achieve the goal of environmental protection" and predicted "significant financial impact." The new regulations in India require a minimum payment of 22 rupees (25 cents) per kilogram for recycling consumer electronics. Companies in the electronics sector have expressed concern that this will double their costs, benefiting recyclers at the expense of their own profits.

LG's court documents revealed that the company had written to the Indian government in August, stating that the proposed price was "too high and should be lowered," and that the government should allow market forces to determine the price. Samsung's filing indicated that the company had written to Modi's office last year, stating that the new pricing was "5 to 15 times the current payment."

Several other companies, including Blue Star and Johnson Controls-Hitachi, have also filed lawsuits or sought to withdraw their legal challenges, although the reasons for the latter's withdrawal were not disclosed. Both companies declined to comment.