Investigation reveals systemic issues in EPR compliance among plastic recyclers in Gujarat, Maharashtra, and Karnataka, raising concerns about the effectiveness of waste management regulations.
In 2023, the Central Pollution Control Board (CPCB) discovered over 600,000 fake pollution-trading certificates during audits of four plastic-recycling companies in Gujarat, Maharashtra, and Karnataka, as revealed by public documents, reports The Hindu citing sources.
Sources from the Ministry of Environment, Forest and Climate Change, along with industry insiders, suggested that the number of fraudulent certificates could be much higher, given that the audited companies are just four out of the 2,348 registered plastic waste recyclers. A small fraction of these recyclers have been physically verified to recycle the claimed amounts.
Between 2022-23, approximately 18,000 companies using plastic packaging were registered with the CPCB under the Extended Producer Responsibility (EPR) scheme. These companies had a collective recycling target of about 3.3 million tonnes, with Ministry data indicating that over 85% of this target was achieved. Non-compliance with these recycling targets can result in fines, as mandated by the Plastic Waste Management Rules.
EPR certificates are generated by registered plastic waste recyclers, who collect and recycle plastic waste. Each tonne of recycled plastic generates one certificate. In the 2022-23 period, companies were required to recycle 70% of their used packaging from the previous two years, with the target increasing to 100% for 2023-24. However, audits revealed that 600,000 of these certificates were fake, though the specific buyers of these fraudulent certificates remain unknown.
The four companies implicated in the scandal—Enviro Recyclean Pvt. Ltd (Karnataka), Shakti Plastics Industries (Maharashtra), Technova Recycling India Pvt. Ltd, and Asha Recyclean Pvt. Ltd—were found to have produced more EPR certificates than their plants’ capacity allowed. The fraud was uncovered through physical inspections by the CPCB, which found these companies unable to prove the sale of recycled plastic. Following these revelations, the Maharashtra Pollution Control Board ordered Technova to cease operations.
A senior official noted that the EPR system has systemic issues, with state pollution control boards often failing to verify the actual recycling activities of companies. The recent discoveries were the result of a random audit by the CPCB, which inspected only a few companies. The deadline for companies to submit their 2023-24 compliance targets has been extended due to difficulties in meeting the requirements.