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South Korean electronics giants LG and Samsung have filed lawsuits against the Indian government, seeking to overturn its controversial e-waste pricing policy.
The move, joined by other industry heavyweights including Daikin, Voltas, Havells, and Blue Star, marks a growing standoff between multinational corporations and Prime Minister Narendra Modi’s administration. These companies argue that the environmental regulations are financially burdensome and unfairly enforced.
The Delhi High Court is set to hear the case today, April 22, 2025, along with other related challenges.
Policy Sparks Uproar
At the heart of the dispute is a new government rule mandating a minimum payment of ₹22 (approx. $0.26) per kilogram to certified e-waste recyclers. The policy is part of an initiative aimed at formalising India’s massive, mostly informal e-waste sector, which currently handles over 80% of recycling activity, and increasing the country’s 43% recycling rate.
While the government says this fixed pricing is essential to boost formal investment and compliance in the recycling industry, companies argue that it disregards economic realities and imposes disproportionate costs.
Corporate Backlash and Key Filings
LG’s 550-page court filing, reviewed by Reuters, condemns the new pricing rules, stating that the government is “fleecing companies and taxing them in the name of the ‘polluter pays principle’” without solving the core issue, the unregulated informal recycling sector.
“If the authorities have not been able to regulate the informal sector, then it is an enforcement failure,” the filing asserts.
Samsung, in a separate 345-page filing, claims the regulation does not inherently promote environmental protection. It also warns that the policy could increase compliance costs by 5 to 15 times, severely impacting business operations.
Both LG and Samsung reportedly wrote to the government last year, warning about the financial risks posed by the new rules. LG labelled the rates as “very high”, urging the government to let market forces decide. Samsung’s letter to the Prime Minister’s Office emphasized that the new policy would triple their recycling costs.
Other major players have followed suit. Daikin, Voltas, Havells, and Blue Star have each filed similar lawsuits against the policy, citing compliance burdens and concerns over business sustainability.
Interestingly, Johnson Controls-Hitachi, which initially filed a case, has since withdrawn it without explanation, according to court records.
Policy Goals vs. Industry Concerns
The Environment Ministry, which has yet to comment publicly on the lawsuits against the Indian government, maintains that the pricing mandate is necessary to encourage formal sector participation and improve India’s global standing in sustainable electronics management. However, critics, including research firm Redseer, point out that India’s e-waste recycling rates remain far below those of the U.S. and China, indicating deeper systemic issues that go beyond pricing.
This legal confrontation highlights the broader tension between environmental policy enforcement and corporate profitability. As the third-largest generator of e-waste globally, India faces mounting pressure to modernize its recycling systems. However, industry leaders insist that doing so through rigid price controls without addressing enforcement gaps will do more harm than good.
With high-stakes business interests, global reputations, and environmental outcomes all in the balance, the outcome of this legal battle could reshape how India and possibly other emerging markets regulate corporate responsibility in the era of green accountability.
