E-Waste Auction Regulations in India: an Overview

Enterclimate

04 Aug, 2022

Auctions are not just an event for sale and purchase. They can also act as an opportunity for any waste-related business that wants to take its business to the next level. How the person fares on the parameters of the auction can decide how profitable the auction will be for him. Successful people in this business or even enthusiastic entrepreneurs must be aware of the E-Waste auction regulations in India e-waste auctioning. Let’s begin by understanding the different components of the e-waste auction process. The seller usually specifies the regulations governing E-Waste auctions when he releases the auction notice. An e-waste auction aims to get the best price for non-functional or waste EEE. Many bulk consumers carry it out in both the private and public sectors. Generally, the items on auction include electronic and electrical devices used in homes and offices, communication and IT devices, medical equipment, lab equipment, etc.

T&Cs present in E-Waste Auction Regulations in India

The Directions governing e-waste auctions are given in the document inviting bidding for the auction. The standard terms and conditions include are as follows.

• The book values of the items are mentioned in the list of items to be auctioned.
• The bidder must sign a declaration attached with the bid application with details like the bidder’s name and address and the EMD. In the case of submitting a tender, each page needs to be signed by the bidder
• Bidders are given a specified time and date to inspect the items before the commencement of the bidding.
• The bidder has to affirm that they are registered with the MoEF/CPCB/ SPCB/PCC as an authorised recycler / re-processor and have environmentally sound management facilities for collection, disposal /recycling of e-waste.
• If item wise bid is to be submitted, it is done on the bidder’s letterhead as per the format of the annexure. The decision to accept or reject the bid /tender lies with seller or authority based on eligibility criteria and the highest bid.
• The successful bidders have to pick up the items within the specified time and make their own arrangements for the purpose.
• EMD of successful bidders is adjusted to the balance payment they must make to complete the transaction.
• Lastly, a checklist has to be filled, affirming that all necessary documents and fees have been enclosed.

Regulations for E-Auction of E-Waste Auction Regulations in India

The terms and conditions for e-auctioning are similar to the format of the traditional e-waste auction. However, some additional conditions must be fulfilled while using e-platforms for auctioning, such as

• To establish the authenticity of the bidder in e-auctioning, the bidder may be required to have a digital signature certificate from any certified licensing agency recognised by CCA India.
• The interested bidders must register at the e-portal. Such registration is generally required to pay a registration fee.
• Date, time and Venue of Inspection: in the case of e-Auctions also, the auctioneer provides the details to help bidders physically verify the items.
• The images of the items to be auctioned may be found on the portal that hosts the auction.
• Any addendum/corrigendum related to the e-auction is posted on the portal, and the bidders must regularly visit the portals for updates.

E-Waste Auction Process in India

The process of conducting an e-waste auction starts with releasing the auction notice. It contains a list of items to be auctioned along with their make and quantity. Complete details of the registration and eligibility conditions are mentioned in the TE. The opportunity to verify the items is given before the auction. In the case of the e-auction of e-waste, the auctioning is done by e-auction portals. The government or even private entities manage such portals. A bidder may come across the following terms that are commonly used when analysing the E-Waste auction regulations in India.

Earnest Money Deposit: This is a kind of token fee that must be submitted by the bidder to show that they are genuinely interested in bidding. This fee is deposited in the form of DD and sent with the bid document at the notified address. A Bidder pays the EMD amount to be able to participate in the bidding of any auction.

Tender fee: It is the fee levied by the auctioneer to carry out the auction process due to involved costs like transportation, storage etc. The bidder can either levy this sum or choose to forego this charge.

Inspection of Auction Items: Before starting the Auction process, the potential bidders or buyers are usually given a period of purview to examine and check the product’s condition.

Balance Payment: As per the e-waste auction regulations in India, all successful bidders have to make full payment, usually within three days or as per the terms mentioned in the auction notice.

Possession of the product: Auction of e-waste happens on the ‘as is where is principle. The bidder has to arrange their own arrangements to pick up the purchased items. Suppose the bidder fails to pick up the items within the stipulated time frame. In that case, the auctioneer can exercise its right to forefeet the entire amount and dispose of the items to an alternate bidder. The sold items are not taken back by the auctioneer.

Period of validity of bid: -it means the period from the bid opening date, during which a bidder’s offer is considered legally binding in terms of its content and conditions.

Registration with Government Authorities: The bidder must be registered as per e-waste rules with the Ministry of Environment &Forest / Central Pollution Control Board and the concerned State Pollution Control Board.

Documents required under E-Waste Auction Regulations in India

• Address proof (electricity bill, Aadhar card, driving license, voter ID )
• Copy of PAN Card
• Copy of VAT registration (if any)
• Earnest Money Deposited Fee
• Bank Account Details, such as a Passbook or canceled cheque.
• Copy of registration and authorisation for disposal of e-waste issued by the Pollution Control Board or Pollution Control Committee^[1]. 

Conclusion

Managing the enormous amounts of E-Waste generated in the country is challenging but highly profitable. The e-waste management businesses are playing a vital role in this regard. Any entity involved in e-waste management, be it collector, refurbisher, dismantler, etc., can utilise this opportunity by participating in an e-waste auction which is an excellent way of sourcing working and repairable components of electronic equipment. Though the E-Waste auction regulations in India that regulate e-waste auctioning are similar to many other auctions, some additional prerequisites and criteria in the case of e-waste auctions need to be adhered to. Guidance and assistance from our team of experts will help you in a swift and hassle-free experience in submitting tenders or bids and in managing your authorisation and licencing required to participate in e-waste auctions in both online and offline formats. Proper knowledge of e-waste regulation can help your business make informed decisions and can help you grow your business in an environment-friendly and sustainable manner.