New Delhi – The Indian tax authority has issued a 550‑page notice accusing appliance giants Haier India, Godrej & Boyce and Blue Star of failing to verify a recycler’s work and improperly claiming tax credits worth roughly $714,000 for e‑waste recycling that never occurred.
Allegations and amounts
The notice cites the little‑known recycler WEEE‑PRO Resource Recovery Solutions, which supplied compliance certificates that the companies relied on without confirming actual collection, transport, dismantling or recycling of electronic waste. Haier is alleged to have claimed $367,900, Godrej $159,700 and Blue Star $186,600.
Company responses
Godrej & Boyce and Blue Star said they would respond to the notice and remain committed to legal compliance. Godrej emphasized that it follows all government recycling guidelines, while Blue Star said it had no reason to suspect irregularities but has halted dealings with the vendor. Haier India pledged continued cooperation with authorities.
Wider industry impact
The findings have sparked alarm across India’s $95‑billion consumer‑electronics market. Executives from several firms, speaking anonymously, said they are launching internal reviews of their recycling supply chains to ensure compliance.
India allows firms to claim tax credits for services such as recycling, reducing the tax owed on sales. Penalties for false claims can reach up to 100% of the credit amount.
Government background
Since 2022, Prime Minister Narendra Modi’s administration has required companies to recycle a share of the products they sell each year. Many firms meet this obligation by purchasing compliance certificates from recyclers, rather than directly overseeing the recycling process.
Earlier this year, the government warned against “fraudulent certification” by spurious recyclers. The current investigation expands that effort, with officials examining WhatsApp messages, timestamps, and photographs to verify the authenticity of the claimed e‑waste movements.
Evidence of fabricated documentation
Investigators noted that photographs submitted as proof showed trucks loaded with e‑waste in daylight despite timestamps indicating it was after sunset. In one case, a recycler executive admitted to adding clouds to images, arguing the edits were not for commercial use and that learning Photoshop was not a crime.
The tax officials concluded that the photographic evidence was manipulated and used to falsely substantiate the alleged physical movement of e‑waste.
Next steps
Senior tax officials said they are analyzing the modus operandi and will task field officers to investigate further across the industry. The finance ministry has not responded to media inquiries.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
