What happens to your old phone, fridge, or washing machine when it dies? Ideally, it should be dismantled, its hazardous parts safely removed, and its metals recycled. But an investigation has revealed that much of India’s e-waste recycling is a fiction. A probe into 41 government-approved plants across Uttar Pradesh, Haryana, Uttarakhand, and Rajasthan found that 31 facilities — nearly 75 percent — either do not exist or appear to be running ghost operations.
On paper, these 31 plants are collectively authorised to recycle up to 8.49 lakh metric tonnes of e-waste annually, entitling them to Extended Producer Responsibility (EPR) credits worth more than ₹1,800 crore. These credits, meant to help electronics companies meet mandatory recycling targets, are often sold to top brands like LG, Samsung, Carrier, Daikin, and Havells. But much of the recycling exists only in documents, photographs, and invoices submitted to regulators.
Fake Plants, Silent Chimneys, and Truck Movements
The ground reality stands in stark contrast to government records. In Uttar Pradesh’s Bulandshahr, three facilities that had twice been “inspected and approved” by regulators simply did not exist. In Meerut, a cluster of 15 units showed no sign of industrial activity — chimneys were silent, and only a few labourers lingered on site.
In Haryana, some registered recyclers were found running auto-component or bus body manufacturing units instead. Others functioned more like trucking depots than recycling hubs — their premises filled with trucks making short trips to weighbridges nearby. Workers photographed these vehicles and materials, suggesting that dummy records may have been uploaded to the Central Pollution Control Board (CPCB) portal to claim recycling credits.
In Rajasthan’s Alwar, a large recycler allegedly disguised already processed material with layers of discarded appliances to inflate its recycling volumes. Meanwhile, some permanently shut plants in Haryana and Uttar Pradesh continued to report increased capacity — with official approval.
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The Shadow Economy of EPR Credits
At the heart of this scam lies the EPR credit system, introduced under India’s E-Waste Management Rules (2022). Similar to carbon credits, these tradable certificates allow electronics producers to demonstrate compliance with recycling targets. Credits are granted to recyclers when they submit proof of e-waste processing to the CPCB.
But the investigation shows how easily the system can be gamed. With inspections either missing or compromised, dubious recyclers generate credits without real operations. These credits are then sold to electronics brands, often at rates far below the government’s own floor pricing.
While genuine recyclers charge at least ₹22 per kg, some companies have been selling credits for just ₹6–8 per kg. This undercuts compliant recyclers and indirectly benefits major electronics brands, who can meet legal obligations cheaply without actual recycling taking place.
Regulatory Failure and the Risk Ahead
The CPCB is legally empowered to conduct surprise inspections and audits. Yet, affidavits filed by state pollution control boards to the National Green Tribunal suggest a pattern of perfunctory checks and blanket compliance reports. For instance, Haryana’s pollution board declared all recycling units compliant, even though at least three of them were either shut or untraceable.
Industry bodies such as the Material Recycling Association of India have repeatedly warned the government about the underselling of EPR credits and the role of dubious players in distorting the market. But little has changed.
With India’s e-waste output expected to double in the next five years, the gap between reported and real recycling threatens both public health and environmental safety. The Modi government’s ambition of building a “circular economy” — reducing dependence on rare earth imports through large-scale recycling — appears undermined by a shadow economy of ghost plants, weak oversight, and questionable corporate gains.
Unless regulators crack down on fraudulent recyclers and enforce transparent audits, India’s e-waste management framework risks becoming yet another paper tiger — ticking compliance boxes while leaving toxic waste to fester in landfills, rivers, and informal scrap yards.