Fake E-Waste Recycling Scam: Haier, Godrej, Blue Star Face INR 6 Crore Tax Credit Probe

Indian tax authorities have flagged Haier India, Godrej & Boyce and Blue Star over alleged lapses in verifying e-waste recycling claims, with a government notice accusing the companies of claiming about $714,000 (roughly ₹6 crore) in tax credits for recycling services that investigators say were not actually carried out.

The case centres on WEEE-PRO Resource Recovery Solutions, a recycler that supplied compliance certificates and documents to the companies. According to a 550-page government notice reviewed by Reuters, investigators found that photographs and other records presented as proof of e-waste collection and processing had been manipulated. CBI Registers FIR Against Godrej Estate Developers, Berkeley Realtech.

How the Fake E-Waste Recycling Claims Came Under Scanner

The investigation focused on whether the e-waste had actually been collected, transported, received, dismantled and recycled. Tax officials said the "foundational activity" of procuring, receiving and processing the e-waste could not be established. The notice alleged that the three companies had not independently verified whether the recycling activity claimed by the vendor had taken place.

The tax authorities' allegations concern tax credits linked to recycling services. The notice reportedly attributed about $367,900 to Haier, $159,700 to Godrej & Boyce and $186,600 to Blue Star — totalling approximately $714,000.

Fake Photos Used as Evidence of E-Waste Movement

One of the most unusual elements of the investigation involved photographs submitted to demonstrate the movement of electronic waste. Investigators examined photographs, WhatsApp messages and other documents and compared timestamps in the images with recorded sunset times. In one example cited in the notice, a photograph timestamped at 7:43 p.m. — around 29 minutes after sunset — reportedly showed bright daylight, an illuminated sky and strong natural shadows. What Is ‘Scam-Yourself’ Attacks? Scammers Find New Ways To Trick Users Through ‘Social Engineering’ Techniques; How To Spot Such Threats and Stay Safe.

The notice also alleged that photographs showing trucks loaded with e-waste and later empty had been digitally altered. In another instance, an executive associated with WEEE-PRO reportedly acknowledged editing photographs by adding clouds, while disputing that the images had been used commercially. The tax authorities, however, described the photographic evidence as manipulated or fabricated and said it had been used to substantiate the alleged physical movement of e-waste.

WEEE-PRO at the Centre of the Investigation

The recycler identified in the notice is WEEE-PRO Resource Recovery Solutions. The company was cited as the issuer of compliance certificates relied upon by the three appliance manufacturers. WEEE-PRO did not respond to Reuters' queries. However, the government notice said representatives of the recycler denied wrongdoing and disputed evidence presented during the investigation. WEEE-PRO's own corporate records show that the company was incorporated in 2020 and is registered in Uttar Pradesh. Haier's publicly available e-waste guidelines also list WEEE-PRO as one of its e-waste partners.

What Haier, Godrej and Blue Star Said

The three companies have indicated that they will cooperate with the authorities. Godrej & Boyce said it followed government guidelines for recycling and would respond to the notice. Blue Star said it had no reason to believe there was an irregularity but has stopped dealing with the recycler involved. Haier India said it would continue cooperating with the authorities and remained committed to legal compliance. The allegations remain part of an ongoing tax investigation; the companies' inclusion in the notice does not by itself establish that they knowingly participated in fraudulent activity.

Why the E-Waste Case Matters

India has been tightening its e-waste management framework as the volume of discarded electronic and electrical equipment grows. The country's Extended Producer Responsibility system requires producers to meet prescribed recycling obligations, creating demand for recycling and compliance certificates.

A January 2026 NITI Aayog report identified fraudulent certification and non-operational or spurious recyclers as structural problems in India's e-waste ecosystem. The report said weak enforcement and limited audits can create gaps between entities registered on the EPR system and recycling facilities that are actually operational.

Reuters reported that the latest investigation has prompted some companies in India's consumer electronics industry to review their recycling supply chains. Tax authorities are also examining whether similar methods may have been used elsewhere.

Tax Probe Could Widen Across E-Waste Industry

The investigation comes amid broader scrutiny of India's e-waste recycling system. Officials are examining the alleged modus operandi and considering further investigations through the industry, according to government sources cited by Reuters.

For now, the central issue is whether recycling certificates and supporting evidence accurately represented actual e-waste collection and processing. The tax authorities' findings could have wider implications for companies that rely on third-party recyclers to satisfy environmental compliance requirements and claim associated tax benefits.

(The above story first appeared on LatestLY on Sep 30, 2026 08:36 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).