Karnataka High Court Upholds Tender Clause Mandating In-State Recycling Facility For EVM Disposal, Says 'Sensitivity' Of EVMs Justify Condition

The Karnataka High Court has recently held that a tender condition requiring the participating e-waste companies to have a recycling facility within the State cannot be deemed as 'discriminatory' when the concerned items to be processed are 'sensitive' electoral equipment like EVMs and VVPAT units that are decommissioned. The single-judge bench of Justice Sachin Shankar Magadum opined that such a specific condition was neither arbitrary nor discriminatory, but 'a regulatory safeguard rooted in environmental compliance' considering the sensitive nature of the material to be recycled.“…The condition requiring in-state facilities is thus not a standalone commercial stipulation but a regulatory safeguard rooted in environmental governance. The disposal of EVMs and VVPATs is not merely a scrap disposal activity. It involves handling of sensitive electronic components, compliance with environmental norms and prevention of unauthorized reuse or data compromise. Therefore, the insistence on local facilities has a direct nexus with the object of ensuring safe, secure, and compliant disposal…”, the court noted in the order dated April 29.The plea was preferred by a Maharashtra-based e-waste recycling company, Evergreen Recyclekaro India, which challenged the tender condition issued in December 2025 by MSTC Ltd. on behalf of Bharat Electronics Limited (BEL), a public sector undertaking that manufactures EVMs. The recycling company specifically challenged Clause II.3.5 of the tender notification, among others, which prevented it from participating in the tender due to the lack of in-state facilities. According to the petitioner, the 'arbitrary' condition violated Article 14 of the Constitution and the Central Pollution Control Board FAQ that allowed interstate movement of recycling waste.Before the High Court, Bharat Electronics Limited (BEL), argued that Karnataka State Pollution Control Board (KSPCB) cautioned the EVM manufacturer about the perils of liberal tender conditions and allowing the scrapping of such machines in out-of-state facilities without KSPCB approvals.The High Court took note of the recommendations made by KSPCB to BEL on account of compliance violations in recycling EVMs and VVPATs. The mandate of local facilities for disposing EVMs/VVPATs has a direct nexus with ensuring safe, secure and compliant management of such machines, the court noted.“….The statutory authority, being entrusted with environmental protection, has mandated localized recycling to ensure continuous monitoring, ease of inspection and immediate regulatory intervention in case of violations”, the court further opined.The court also observed that BEL is not an ordinary procuring entity but a premier PSU manufacturing highly sensitive electoral instruments. Consequently, a certain degree of latitude had to be conceded to the company in framing tender conditions that align with environmental guidelines and to protect its institutional credibility, Justice Magadum said. Any lapse or non-compliance in the process of disposal of such sensitive electronic waste…, may expose the respondent-company to serious civil consequences, including jeopardizing its eligibility to secure future manufacturing orders of national importance. In that light, a certain degree of latitude must be conceded to the respondent-company to incorporate tender conditions that are aligned with, and indeed necessitated by the guidelines and supervisory framework of the competent environmental authorities…”, the court clarified.On the aspect of whether a bidder can insist on altering the tender terms, the court also added that the participation in a tender is not a fundamental right but a conditional privilege subject to eligibility criteria specified irrespective of past participation in previous tenders. BEL awarding the tender to the petitioner company itself has resulted in compliance notices and operational constraints for BEL, the court pointed out.Accordingly, the court dismissed the challenge against the tender conditions, noting that they are rooted in regulatory necessity rather than arbitrary exclusion.“…while competitiveness is a cornerstone of public procurement, environmental compliance and regulatory enforceability stand on a higher pedestal when dealing with hazardous waste. The balance struck by the respondents, guided by KSPCB, cannot be said to be irrational or unconstitutional”, the court noted before parting.Case Title: Evergreen Recyclekaro India Limited vs. Bharat Electronics Limited & MSTC Limited Case No: WP No. 935 of 2026Appearances: Sr. Adv. G.L. Vishwanath with Adv. Abraham Joseph for Petitioner, Sr. Adv. Lakshmi Iyengar with Adv. Ludhveena Luthria for R1-BE, Adv. H.M. Muralidhar for R2-MSTC]Click Here To Read/Download OrderCitation: 2026 LiveLaw (Kar) 182

Karnataka High Court Upholds Tender Clause Mandating In-State Recycling Facility For EVM Disposal, Says 'Sensitivity' Of EVMs Justify Condition

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Karnataka High Court Upholds Tender Clause Mandating In-State Recycling Facility For EVM Disposal, Says 'Sensitivity' Of EVMs Justify Condition

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