Blue Star gets temporary relief as Delhi HC stays regulator’s e-waste price declaration

A court stay has temporarily stalled the Narendra Modi government’s latest attempt to enforce minimum prices in India’s e-waste carbon credit market.

Air conditioning and home appliances manufacturer Blue Star had approached the Delhi High Court last month. This was to challenge a new government mandate that required recyclers and electronics firms to assure authorities that they were selling or buying e-waste carbon credits at rates equal to or exceeding a minimum price, according to court documents reviewed by Newslaundry.

Four days after Blue Star’s application, the Delhi High Court on December 24 granted an interim stay on the new declaration until the next hearing on January 27. 

The Central Pollution Control Board (CBCP) had introduced the “I hereby confirm and declare…” requirement on December 12. This was on its portal, where carbon credits – known as extended producer responsibility (EPR) certificates in government parlance – are traded between recyclers and electronics companies. A CPCB official, who was not authorised to speak with the media, said the self-attested declaration was introduced for “transparency” in the exchange of EPR certificates.

Without signing the declaration, EPR certificate exchanges could not be completed on the CPCB portal. The declaration also warned that recyclers or producers providing wrong or misleading information during EPR transactions would be liable for action under the Rules.

The move followed Newslaundry’s investigative series ‘India’s E-waste Underworld’, which, among other developments, reported that EPR certificates were being traded at prices far below the minimum rate mandated by the CPCB under the amended E-waste Management Rules of 2024. Under the rules, e-waste manufacturers are required to pay recyclers a minimum of Rs 25 per kg to meet their recycling obligation. E-waste refers to electronic products that have reached the end of their useful life and are discarded.

Blue Star is among six major electronics manufacturers that have challenged the E-waste Management Rules, 2024, arguing that price discovery of EPR certificates should be left to market forces. The other companies are Havells, Daikin, Voltas, Samsung and LG. Blue Star’s application has been merged with the broader challenge to the 2024 Rules.

When asked about the next course of action for CPCB, the official quoted above said that the regulator would continue to argue against the interim stay and the broader challenge to the Rules on January 27.

Declaration ‘violates’ fundamental rights

In its application, Blue Star argued the declaration caused “a standstill in issuance and transfer of EPR credits” and violated Articles 14 and 19(1)(g) of the Constitution. Article 14 provides for equality before law, while Article 19(1)(g) guarantees the right “to practise any profession, or to carry on any occupation, trade or business”.

Blue Star objected to the declaration being introduced while the main case – in which six firms have challenged the amended 2024 Rules – is still pending.

“The petitioner submits that CPCB, while the matter is already pending for final arguments, has now added a new declaration form to be accepted by both producers and recycler at the time of generation of certificate on the portal. It is further submitted that if [the] recycler and producer do not accept this declaration the EPR certificate can neither be generated nor transferred,” read the Blue Star application.

Electronics companies that introduce e-waste to the market have annual statutory recycling obligations, which can be fulfilled by purchasing EPR certificates from recyclers.

Blue Star also argued that the declaration could delay its ability to meet its EPR obligation for this financial year. The company has not disclosed its EPR obligation for 2025-26.

The declaration read: “I hereby confirm and declare that the price/transaction value of EPR Certificate(s) being sold and transferred by us to the producer is more than or equal to the lowest price of exchange of EPR Certificate(s) and is less than or equal to the highest price of exchange of EPR Certificate (s) in compliance of the rules 22(1) and 15 (9) of the E-Waste (Management) Rules, 2022 and amendment thereof and the Environmental Compliance guidelines published by Central Pollution Control Board dated 09- 09-2024.”

It further stated that any false or misleading declaration would invite government action. “We also declare and undertake herewith that this price/transaction value represents complete commercial considerations and all the responsibilities of correctness of above confirmation & declaration will be ours. In case it is found that my above confirmations & declarations are false or wrong or misleading at any point of time, this transaction including the quantity of EPR certificate being transferred to producer will be treated illegal and null & void and actions as per the rules may be initiated against this recycling company,” read the declaration.

Blue Star claimed the requirement had effectively frozen transfers on the portal. “The petitioner submits that since the implementation of this declaration requirement has been made mandatory, no recycler on the CPCB portal has been willing to accept or proceed with credit issuance – causing a standstill in issuance and transfer of EPR credits,” its petition read.

“Since the court has already heard the matter substantially, we provide that till the next date of listing, the declaration as sought for shall not be insisted upon by the respondents,” read the order passed by a division bench of Chief Justice Devender Kumar Upadhyaya and Justice Tushar Rao Gadela.

Three recyclers Newslaundry spoke with lauded CPCB’s declaration. “The declaration was a victory for many ethical recyclers, and this would have made errant players exchanging EPR certificates at low rates liable for action,” one of them said.

Requests to CPCB and Blue Star seeking their comment have not been responded to.

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