A Show Cause Notice was issued to organizations for non-compliance with the EPR requirements under the Plastic Waste Management Rules, 2016, as amended. This notice is issued under Section 5 of the Environment (Protection) Act, 1986, and provides details of the organization’s failure to submit the Annual Return (AR) for FY 2022-23 and FY 2023-24.
Key Points of the Notice:
1. Filing of Annual Return (AR):
- Producers, importers, and brand owners are required to file their Annual Return detailing the amount of plastic waste collected, processed, and recycled by June 30th of the following financial year.
- For FY 2023-24, the return was due by November 30, 2024. The company received several extensions (until September 30, 2024 and later until November 30, 2024) but still failed to file their report.
2. Failure to File Leads to Penalties:
- As per the notice, if the AR is not filed by the given deadline, it will be auto-filed by the system, and penalties will be imposed, including Environmental Compensation (EC) charges. Additionally, Annual Processing Charges for the delay will also be applicable.
- If the return is auto-filed, it will be considered a violation, and the company will be penalized for non-compliance.
3. Increased EPR Targets:
- For organizations that fail to file their ARs, the EPR target for the next year (2024-25) will be increased by 25% as a penalty.
- It was also observed that the EPR target for FY 2023-24 was raised by 25% due to the failure to submit the AR for FY 2022-23.
- The consumption of plastic by the company for 2021-22 was reported to have been increased by 25% on the centralized EPR portal for FY 2023-24, meaning their targets for the following year automatically became higher.
4. Environmental Compensation (EC):
- The EC charges are calculated based on the shortfall in meeting the EPR targets for FY 2023-24. If the AR for FY 2022-23 is not filed, additional EC charges may be levied for the prior year as well.
- The EC serves as a financial penalty to encourage compliance and offset the environmental damage caused by plastic waste mismanagement.
To Offset EC Charges
If the company has failed to meet its EPR obligations for FY 2022-23, the EC charges for the shortfall in targets can be offset, provided the AR for FY 2022-23 is filed before the stipulated deadline (November 30, 2024).
Additionally, filing the AR will help the company comply with the Plastic Waste Management Rules, reducing the risk of further penalties. However, the auto-filing process will include the application of EC charges and possibly an increase in the company’s EPR targets for the subsequent years.
For any questions or concerns regarding the filing process or difficulties faced during filing, you can reach out to Climeto, by filing your AR and fulfilling the obligations, you contribute to protecting the environment and avoiding unnecessary penalties. Don’t wait until it’s too late!
Disclaimer: Above content does not constitute any legal advice and is only provided for educational purpose.
Climeto Sustainable Services Private Limited is an environmental consultancy. If you need any more information on the above you can contact us:
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