LG, Samsung sue Indian Government over e-waste recycling policy citing high prices

South Korea’s leading electronics companies, LG and Samsung, have filed lawsuits against the Indian government challenging its new electronic waste (e-waste) recycling policy. The legal move escalates a broader industry pushback from both foreign and Indian manufacturers who argue that the policy is financially burdensome and ineffective in solving the core issues of e-waste management.

The government’s revised rules, now under legal scrutiny, mandate a minimum payout of ₹22 per kilogram to formal recyclers of consumer electronics. The intent behind the rule is to reduce dependence on informal scrap dealers and bring structure and investment to India’s struggling recycling sector. However, electronics makers argue that the mandate will significantly increase operational costs.

India is the world’s third-largest generator of e-waste, trailing only China and the US. Despite this, only 43% of e-waste in the country was recycled last year. The informal sector continues to dominate the space, accounting for about 80% of the activity. Authorities believe the new pricing model will professionalize the industry and drive better environmental outcomes.

LG, in its 550-page filing to the Delhi High Court, criticized the policy as being punitive towards manufacturers. It argued that penalizing companies under the 'polluter pays principle' without first fixing enforcement issues in the informal sector was both unfair and counterproductive. LG had also written to the government in August, suggesting that the rates were too high and should be left to market dynamics.

Samsung, in its 345-page submission, echoed LG's concerns. The company emphasized that price regulation alone does not contribute meaningfully to environmental protection and warned that the new policy would have a severe financial impact. According to Samsung, the mandated rates are five to fifteen times higher than current payments, making them unsustainable.

The South Korean firms are not alone. Indian companies like Daikin, Havells, and Voltas have also taken legal action against the new rules. Industry experts say while the policy’s intent is well-placed, its execution needs balancing between environmental responsibility and economic practicality. India’s recycling efficiency still lags behind the US and China, and achieving better results may require both regulation and reform.