Indian tax authorities have flagged lapses by appliance makers Haier India, Godrej & Boyce and Blue Star over their reliance on documents from a recycler accused of fabricating evidence of e-waste processing, according to a government notice. The notice alleged that the companies failed to independently verify whether the recycler had actually collected, transported, received, dismantled or recycled electronic waste, while using its certificates to meet regulatory obligations and claim tax credits. The tax authorities said the foundational activity of procuring, receiving and processing e-waste had not been established. The notice alleged that Haier claimed tax credits of about $367,900, Godrej & Boyce about $159,700 and Blue Star about $186,600 for recycling services that were allegedly never rendered, putting the combined claims at roughly $714,000. The case concerns WEEE-PRO Resource Recovery Solutions, identified in the notice as the issuer of compliance certificates. WEEE-PRO did not respond to Reuters’ queries, while the notice said its officials denied wrongdoing and disputed evidence presented during the investigation. Godrej & Boyce and Blue Star said they would respond to the notice and remained committed to legal compliance. Godrej said it followed government recycling guidelines, while Blue Star said it had no reason to suspect irregularities but had stopped dealing with the vendor. Haier India said it would cooperate with authorities and comply with applicable requirements. The findings have raised concerns across India’s consumer electronics industry, with several companies reportedly reviewing their recycling supply chains. India, one of the world’s largest generators of e-waste, has sought to increase formal processing as a large share of discarded electronics is handled by informal scrap dealers using harmful methods. Since 2022, the government has required companies to recycle a specified share of the products they sell, with many businesses meeting obligations through compliance certificates issued by recyclers. The investigation highlights the risks of relying on documentation without verifying physical recycling activity. Tax authorities examined WhatsApp communications, documents and photographs submitted as evidence of e-waste movement. The notice said some photographs had been digitally manipulated, including images showing trucks carrying e-waste that were allegedly altered. Investigators compared timestamps with sunset times and found inconsistencies between the stated timing and visible lighting conditions. One photograph timestamped at 7:43 p.m., 29 minutes after sunset, reportedly showed bright daylight, an illuminated sky and pronounced natural shadows. The notice also referred to an admission by a WEEE-PRO executive that photographs had been edited by adding clouds, although the executive reportedly said the images were not used commercially. The tax authorities said the photographic evidence was manipulated or fabricated and used to falsely substantiate e-waste movement. The episode underscores growing scrutiny of corporate recycling claims and the need for verification across supply chains.
