Rules 60 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rules 60 to 64 close Chapter VIII of the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016. They say when environmental compensation is payable by entities in the non-ferrous scrap system, how a later compliance can bring part of it back, how an act of contravention is penalised through section 15 of the Environment (Protection) Act, 1986, who audits the entities and how the Steering Committee runs the scheme.
These Rules are current as amended up to G.S.R. 636(E) dated 16 July 2026 (Chapter VIII on non-ferrous metal scrap in force from 1 April 2026). Later amendments, CPCB guidelines and notifications should be checked. If a notice of compensation or a registration revocation has reached you, our legal dispute resolution team can look at it with you.
A manufacturer, producer, collection agent, refurbisher or recycler, registered or not, that fails to comply and causes loss, damage or injury to the environment or public health is liable to environmental compensation under CPCB guidelines, after a hearing (rule 60). Paying it does not cancel the EPR target, which carries forward for up to three years. Rule 61 adds action under section 15 of the Act.
Rule 60: environmental compensation
When it is payable (60(1) to 60(3))
Where any manufacturer, producer, collection agent, refurbisher or recycler, registered or not registered, fails to comply with any provision of the Rules and thereby causes loss, damage or injury to the environment or public health, it is liable to pay environmental compensation in accordance with the guidelines issued by the CPCB. No compensation may be imposed without giving the entity an opportunity of being heard, and the CPCB may impose and collect it. The rule prints no rate; the amount is a matter for the CPCB guidelines, which should be consulted separately.
Compensation does not clear the target (60(4))
The payment of environmental compensation does not absolve the producer from the EPR target in Schedule XI. The unfulfilled target for a year is carried forward to the next year, and so on, up to three years. For how targets work, see rules 44 to 50.
Partial refund for later compliance (60(5))
If the entity later complies with the obligation, the compensation it paid may be returned in these proportions:
| Compliance achieved | Compensation that may be returned |
|---|---|
| Within one year | 85% of the compensation |
| Within two years | 60% of the compensation |
| Within three years | 30% of the compensation |
| After three years | None |
The word is "may": the sub-rule says the amount "may be returned", and the slabs set the ceiling at each stage.
False certificates (60(6))
If false information is furnished resulting in over-generation of EPR certificates by a recycler above five per cent of the actual recycled scrap, registration may be revoked temporarily and environmental compensation imposed, and that compensation is not returnable. Violation of the provisions three times or more results in permanent revocation of registration, over and above the compensation.
Separate account and use (60(7) and 60(8))
The compensation is kept in a separate account maintained by the CPCB. It is used for restoring loss, damage or injury to the environment or public health through environmentally sound management, including collection and recycling or end-of-life disposal of uncollected and non-recycled scrap, and for remediation or removal of contamination from unscientific management of non-ferrous scrap.
Rule 61: action for contravention
Rule 61 is a single sentence. Any person who fails to comply or contravenes the provisions of the Rules is also liable to action in accordance with section 15 of the Act. The rule restates no penalty; the figures and the procedure are in the Act, see sections 15 to 15B of the EP Act. The word "also" matters: the liability under rule 61 sits alongside the compensation under rule 60.
Rule 62: verification and audit
The CPCB, by itself or through a designated agency, audits manufacturers, producers, collection agents, refurbishers and recyclers through inspection and periodic audit as it deems appropriate, and takes action for violations under rule 60 (62(1)). An audit fee may be charged by the CPCB from registered entities (62(2)); no amount is printed in the rule. Certificates bought by producers are separately open to audit under rule 46(5).
Rule 63: the Steering Committee
The Central Government constitutes a Steering Committee to oversee EPR for non-ferrous scrap (63(1)):
| Member | Capacity |
|---|---|
| Chairperson of the CPCB | Chairperson |
| One representative each of the Ministries or Departments dealing with Environment, Forest and Climate Change; Mines; Steel | Members |
| One representative each of manufacturer and producer associations; one of recycler associations | Members |
| One representative of the Jawaharlal Nehru Aluminium Research Development and Design Centre, Nagpur | Member |
| One representative of a State Pollution Control Board or Committee, and one of the Urban and Rural Departments of a State or Union territory | On rotation |
| Member Secretary of the CPCB | Member |
| In charge of the CPCB division dealing with non-ferrous metals | Member Convener |
The Committee may co-opt other members (63(2)). It is responsible for overall implementation, monitoring and supervision (63(3)), decides disputes arising on representations received and refers any substantial issue to the Central Government (63(4)), reviews and revises the recycling targets in view of technological advances and other factors and makes recommendations to the Central Government (63(5)), and takes such measures as it deems necessary (63(6)). Its approval is also needed for certain CPCB decisions under rule 47, such as certificate denominations.
Rule 64: hazardous waste provisions also apply
The provisions relating to hazardous wastes under the Rules also apply to utilisation and management of scrap of non-ferrous metals. In practice this means that a recycler or refurbisher handling such scrap should check whether the earlier chapters on storage, transport, records and accidents are engaged as well. The authorisation and manifest rules are explained in rules 6 and 7 and rules 16 to 19.
Who is affected
Every registered participant, and also unregistered ones, since rule 60(1) applies "either registered or not registered". Recyclers face the sharpest consequences because of rule 60(6): over-generation of certificates above five per cent of actual recycled scrap can lead to temporary revocation, non-returnable compensation and, on a third violation, permanent revocation.
Example
Delta Metals Private Limited, a recycler, uploads a quantity that results in certificates exceeding actual recycled scrap by more than five per cent. After a hearing the CPCB temporarily revokes registration and imposes compensation. Because the case falls under rule 60(6), the compensation is not returnable. Under rule 46(4) the details given by producer and recycler are cross-verified and the lower figure counts towards a producer's target, so a producer that bought certificates from Delta should watch its own position, and any shortfall carries forward for up to three years under rule 60(4).
Need help with compensation or notices?
Compensation, revocation and audit findings turn on the record of what was filed and when. Our legal dispute resolution team can help you prepare a reply, assemble returns and certificates and present your case at the hearing the rule requires.
Key takeaways
- Compensation under rule 60 can be imposed on registered and unregistered entities alike, after a hearing, under CPCB guidelines.
- Paying compensation never clears the Schedule XI target; the shortfall carries forward for up to three years.
- A later compliance can bring back 85, 60 or 30 per cent of the amount, depending on whether it comes within one, two or three years, and nothing after three years.
- False certificate generation above five per cent of actual recycled scrap leads to non-returnable compensation and possible revocation.
- Rule 61 brings in section 15 of the Act; rule 62 provides audit; rule 63 constitutes the Steering Committee.
Read next
- Rules 44 to 50: registration, targets, certificates and trading
- Rules 51 to 59: duties of each participant
- Rules 39 to 43: used oil compensation, penalty and audit
- Sections 15 to 15B of the EP Act
Disclaimer: Based on the environment rules, guidelines and notifications named above as published in the Gazette of India, read with every amendment notified up to 3 October 2026 that the article names (consolidated reading texts from the CPCB 2021 compilation and the Goa State Pollution Control Board 2025 compilation were checked against the amending notifications), as consulted on 3 October 2026. Later amendments, CPCB guidelines, State Board orders and fees should be checked. This article is general information, not legal advice; check the official text before acting.