Written by PPL Newsroom• October 1, 2026• 9:39 am• Business & Sustainability

Tax notice faults Haier, Godrej and Blue Star over fake e-waste recycling papers

A 550-page notice says three appliance makers claimed tax credits for recycling that investigators say never happened, and the case is prompting wider reviews.

Indian tax authorities have faulted Haier, Godrej & Boyce and Blue Star for failing to spot documents fabricated by a recycler that did no e-waste work, according to a government notice. Reuters reviewed the notice, which is dated 27 August. The case shows how a paper trail can stand in for real recycling in India’s producer-responsibility system.

What the notice says

According to reports on the notice, the three companies relied on compliance certificates from WEEE-PRO Resource Recovery Solutions. Investigators say the recycling services behind about $714,000 in tax credits were not actually carried out. Indian reports put that sum at roughly ₹6 crore to ₹6.85 crore.

Haier allegedly claimed $367,900, Blue Star $186,600 and Godrej $159,700. Under Indian tax law, penalties for false claims can reach 100 per cent.

The tax officials wrote that “The foundational activity of procurement, receipt and processing of e-waste itself is not established.” The notice says the three companies admitted they had not independently verified the collection, transport, receipt, dismantling or recycling of the e-waste. Such verification is needed to claim the credits.

Investigators went through scores of WhatsApp messages and documents. They also compared recorded sunset times with the scenes in photographs submitted for compliance. One photograph logged nearly 30 minutes after sunset showed bright daylight and strong shadows.

How the companies responded

Godrej & Boyce and Blue Star said they would respond to the notice and were committed to legal compliance. They added that the recycler had been authorised by the government. Blue Star said it had no reason to believe there was any irregularity but had stopped dealing with the vendor. Haier India said it would keep cooperating with the authorities. India’s finance ministry did not respond to Reuters’ queries.

The notice is an allegation, and the companies have yet to file their formal replies.

Why it matters beyond three firms

Two senior government sources told Reuters that concerns about false documents have led tax authorities to widen their investigation across the industry. Many large companies aware of the case have started internal reviews of their recycling supply chains, according to three industry executives who did not want to be named. The case follows a January government warning about “fraudulent certification” by spurious recyclers.

The stakes are high because India’s e-waste problem is large. India is the world’s third-biggest generator of e-waste after China and the United States, and 78% of it is handled by informal scrap dealers. Their methods can harm the environment. Data tabled in Parliament shows India generated 1,397,955.59 tonnes of e-waste in FY 2024-25, up 11.5% from the year before.

What this means for India

Under the E-Waste Management Rules, 2022, producers show compliance with recycling targets through tradable certificates, which work somewhat like carbon credits. This case suggests a certificate alone does not prove that waste was processed. Companies that buy certificates may now need to check collection, transport and dismantling themselves. For consumers, the practical stake is whether discarded fridges and air conditioners end up in authorised recycling plants or with informal dealers.

What to watch

The next steps are the companies’ formal responses to the notice and whether tax authorities send similar notices to other manufacturers. Industry-wide reviews of recycler audits are also under way, and these may change how appliance makers choose and check their recycling partners.