NGT issues notice to CPCB & MoEFCC on recovery of 6 lakh fake EPR certificates from plastic-recycling companies in Gujarat, Maharashtra & Karnataka

The companies claimed to generate far more certificates than what their actual recycling capacity permitted for. It was also alleged that the recycling companies generated and sold fake Extended Producer Responsibility (EPR) certificates without actually recycling the plastic waste.

National Green Tribunal

National Green Tribunal: Taking suo motu cognizance news item titled “6 lakh fake pollution -trading certificates unearthed in three States” in The Hindu dated 14-07-2024, Arun Kumar Tyagi, Judicial Member and Dr. A. Senthil Vel, Expert Member issued notice to the Central Pollution Control Board (‘CPCB’) and Ministry of Environment, Forest & Climate Change at Maharashtra, Gujarat, Karnataka.

In the matter at hand, the news item revealed the discovery of 6,00,000 fake Extended Producer Responsibility (EPR) certificates by CPCB from audits at four plastic-recycling companies in Gujarat, Maharashtra and Karnataka. The EPR certificates are used by companies that utilize plastic packaging to meet legal obligations by ensuring that a percentage of the plastic that they are using is recycled. Enviro Recyclean Pvt. Ltd (Karnataka), Shakti Plastics Industries (Maharashtra), Technova Recycling India Pvt. Ltd (Gujarat), and Asha Recyclean Pvt. Ltd (Gujarat) were implicated. As per the new piece, the CPCB found that these companies claimed to generate far more certificates than what their actual recycling capacity permitted for. It was also alleged that the recycling companies generated and sold fake EPR certificates without actually recycling the plastic waste. The CPCB, on physical inspection found the discrepancies between the claimed recycled quantities and the companies’ actual capacities and sales records.

This malpractice undermines the integrity of the EPR scheme, which is designed to promote the recycling of plastic waste. The companies that purchased these fake certificates may not have met their recycling obligations, leading to potential environmental harm due to the non-recycling of significant amounts of plastic waste.

The Tribunal said that the issue raised substantial issues relating to compliance of the environmental norms, especially compliance of Environment Protection Act, 1986 and the Plastic Waste Management Rules, 2016 (‘Rules, 2016’).

The Tribunal impleaded and issued notice to and the Ministry of Environment, Forest & Climate Change (Maharashtra), (Gujarat), (Karnataka).

Considering that the cause of action lies within jurisdiction of the Central Zone Bench of the Tribunal at Bhopal, the Tribunal directed to list the matter before the Central Zone Bench of this Tribunal at Bhopal on 08-11-2024 after Chairperson’s order for transfer of the case.

Extended Producers Responsibility

Section 3(h) of the Rules, 2016 defines “extended producer’s responsibility” as the responsibility of a producer for the environmentally sound management of the product until the end of its life.

Section 9 of the Rules provides for responsibility of producers, importers and brand owners. They are required to fulfil the extended producer responsibility and are deemed to have complied with the responsible for collection of such plastic packaging, when they fulfil their EPR certificate.

The Schedule II for the Rules, 2016 provides for guidelines on EPR for Plastic Packaging and commodities made from compostable plastics or biodegradable plastics. The EPR is applicable to both pre-consumer and post-consumer plastic packaging waste.

[News Item titled “6 lakh fake pollution -trading certificates unearthed in three States” appearing in The Hindu dated 14-07-2024, 2024 SCC OnLine NGT 559, Decided on: 26-07-2024]

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