Eligibility for E-Waste Auctions in India: Who Can Participate?

Shalin Verma

16 Nov, 2022

As suggested by the name, e-waste auctions are auctions/negotiations conducted through an online/ offline platform for waste and end-of-life electric and electronic products. Auctions are highly confidential events conducted between the auctioneer and a set of qualified bidders. Traditional auctions and E-auctions are the two-mode to organise e-waste auctioning in the country. E-auctioning is preferred today by private and public sector entities to dispose of their e-waste at the best price. Both modes follow the“as is where is” principle. Some other advantages, like the lower cost of conducting the auction, transparency, and a broader reach, are a few of the numerous benefits associated with the online auction mode. For instance, no outsider can view any aspect of an e-auction event without proper authentication by the auctioneer. Therefore all data like Items’ specifications, pricing, bidders’ information, and bid data are confidential and available to respective auctioneers only, increasing the process’s transparency. Apart from the standard regulations that bar specific entities from participating in the auction, any entity, be it a company or an individual who wishes to bid or participate in the auction event, can do so by following the SOP for registration, inspection and bidding process. The bidder can register either as a company by providing a CIN number or as an Individual by providing PAN card details along with the other necessary documents. These additional documents must be submitted online, too. The applicant must check the document approval status in advance, as only approved bidders can view and participate in the online live auction. In the following article, we will be learning in detail who can participate in an e-waste auctioning process, the eligibility criteria and the regulations governing the participants’ conduct before and during the auctioning process.

Who can participate in the E-Waste Auctioning Process

Individuals, as well as registered e-waste businesses, can participate in the e-waste auctioning process. In the case of the company, the bidder should be registered with the Central Pollution Control Board (CPCB)^[1], State Pollution Control Board (SPCB) or Pollution Control Committee (PCC). However, regardless of the mode of auction performed, every bidder should have a legally sound reason to participate in e-waste auctions. In addition, they must have eco-friendly waste management facilities or means to recycle the waste and its proper disposal as per the provisions of the E-Waste Management Rules, 2016 and the guidelines provided by the government. The term “company” can include entities with the following legal status.

• Limited Company
• Undertaking
• Partnership
• Joint Venture

If we look at the category in which the waste management businesses usually fall, the following businesses can enrol themselves for e- auctioning.

• Micro unit as per MSME
• Small unit as per MSME
• Medium unit as per MSME
• Small Scale Industry SSI

Process of Registration and Inspection and Submission of Bid

To participate as a bidder, the individual must register and perform the bidding process carefully. After going through the terms and conditions of the auction, the interested individual must fill out all the required details in the registration form. The bidder or any authorised representatives can inspect the E-waste to be auctioned to ensure quality, usefulness, and the item they are bidding on. All serious bidders must register themselves carefully and give the correct details. They must pay the EMD amount to be able to participate in the bidding of the auction. The details of the entity needed at this stage are

• Name of the applicant/ Firm
• Address
• Contact number
• Registration Status
• Details of Bank Account
• EMD details
• Certificate or Undertaking in the prescribed format.

Documents to be submitted with the bid

• Address Proof (electricity bill/ Aadhar card/ driving licence/ voter I-card etc.)
• Copy of PAN card
• Copy of VAT registration(if any)
• Copy registration and authorisation for disposal of e-waste
• Corporate Identification Number (CIN)
• EMD fee
• Bank account Detail (passbook/ cancelled cheque leaf copy etc.)

Regulations on E-Waste Auction in India

Terms and conditions in the case of e-waste are similar to the regular auction conducted for any other items. However, in the case of e-waste auctioning, some additional steps are placed, such as

• By responding in the auction, the bidders commits to buy or sell items at prices submitted by them.
• For authentication purposes, the bidder may be required to have a digital signature certificate in advance issued by any certified licencing agency and recognised by CCA India.
• In the case of e-auctioning, every bidder must register at the website on which the auction is conducted. The bidder may be required to pay a registration fee.
• Venue, Date and Time of Inspection must be checked as the auctioneer generally provides bidders with details to help them physically verify the items.
• The photographs of e-waste to be auctioned can be usually found on the website and can be verified physically too before the auction.
• The bidders should regularly visit the website for auction-related updates, as any changes related to the auction are uploaded on the auctioneer’s website.

• In case of a change in bidding amount, all bidders who have registered and paid the EMD amount for the auction will receive an SMS on their registered mobile number on the change of bid amount.
• The contract between the seller and the bidder is interpreted under the state’s laws. Care must be taken to fulfil all criteria if one wants the outcome of the bid to be successful.

Conclusion

Because of the mounting e-waste and lack of transparent means for trading in the e-waste sector, most of the e-waste is still reaching landfills after unscientific and unregulated e-waste management practices like illegal dumping, dismantling and metal recovery. Therefore the government is promoting novel means to facilitate waste trade practices, and e-waste auctions have proven to be a successful step in this regard. Thus, the government and many private entities have developed e-auctioning software and digital platforms that connect domestic and international buyers and sellers by organising a regulated e-waste auctioning process.

Read our Article: What are Compliance Requirements for E-Waste Refurbishment Business?