Two of South Korea’s tech titans — Samsung and LG — have taken India’s government to court, challenging a newly implemented e-waste recycling policy they say could severely impact their bottom lines.
The companies have filed lawsuits in the Delhi High Court, aiming to overturn new rules that mandate higher payouts to electronic-waste recyclers. Their filings argue that the policy, while aimed at improving India’s dismal recycling rate, imposes unfair financial burdens on manufacturers.
This legal showdown is the latest in a wave of challenges from major corporations — including Daikin, Voltas, and Havells — against Prime Minister Narendra Modi’s administration, as India ramps up environmental reforms in one of the world’s fastest-growing electronics markets.
India currently ranks as the world’s third-largest e-waste generator, trailing only China and the United States. Yet only about 43% of the country’s e-waste is formally recycled. Most of it ends up with informal scrap dealers who operate without regulations or safety measures.
To combat this, India introduced a rule requiring companies to pay a minimum of ₹22 (25 U.S. cents) per kilogram to certified recyclers. The goal is to bring more structure, safety, and investment into the formal recycling sector.
But Samsung and LG aren’t convinced. In a 345-page filing, Samsung argued that regulating prices doesn’t necessarily help the environment and warned the financial impact could be “substantial.” LG, in a separate 550-page court filing, criticized the policy as flawed, saying it unfairly penalizes manufacturers instead of addressing enforcement failures in the informal recycling sector.
Both companies had previously lobbied against the pricing floor, warning it would triple their compliance costs and benefit recyclers without guaranteeing environmental progress.
The lawsuits are scheduled for a hearing this week, alongside similar petitions from other industry players. The outcome could redefine how India balances corporate accountability with environmental sustainability — and whether global companies are ready to shoulder the cost of cleaning up what they sell.
