The action against IMAGE was taken after the Directorate General of GST Intelligence (DGGI) found that its registration was obtained irregularly.
Published Feb 04, 2025 | 12:49 PM ⚊ Updated Feb 04, 2025 | 12:49 PM
Medical waste. Representative Image. (iStock)
Synopsis: The Kerala GST Department cancelled the registration of medical waste management agency IMAGE. Now, the collection and treatment of biomedical waste in Kerala face a serious crisis. Recently, two other companies faced backlash following the unauthorised and illegal dumping of medical waste from Kerala in parts of Tamil Nadu.
The Kerala Goods and Services Tax (GST) Department cancelled the registration of IMAGE (Indian Medical Association Goes Eco-friendly), the medical waste management agency of the Indian Medical Association (IMA), sources said on Tuesday, 4 February.
Following the decision, the collection and treatment of biomedical waste from over 20,000 healthcare institutions in Kerala face a serious crisis.
The action against IMAGE was taken after the Directorate General of GST Intelligence (DGGI) found that its registration was obtained irregularly.
Recently, two other companies faced backlash, both legal and public, following the unauthorised and illegal dumping of medical waste from Kerala in parts of Tamil Nadu.
Sunage Eco Systems Private Limited, which used to collect wastes from Regional Cancer Centre (RCC) Thiruvananthapuram and Leela Raviz Hotel Kovalam, were permitted to collect 4.53592 tonnes of waste per day but they collected more than that. Eventually, its registration was cancelled.
Another agency involved, Use Again Systems, collects waste from Credence Hospital in Thiruvananthapuram. Use Again Systems was issued a show-cause notice after it was found that the company was functioning without a valid Kerala State Pollution Control Board (KSPCB) certificate.
Currently, three cases are pending in front of the National Green Tribunal (NGT) over illegal waste dumping in Tamil Nadu.
The cancellation of registration is expected to disrupt biomedical waste disposal across Kerala, raising concerns about potential public health and environmental hazards.
Confirming the development IMA Kerala Secretary Dr Sasidharan K told South First, “Yes, the registration has been cancelled. From a technical point of view, the GST department may say that it’s a procedural development. But we have to look at the larger picture. If wastes are not collected and not disposed of scientifically, we are staring at a health crisis.”
It has to be noted that hospitals, clinics, and laboratories across Kerala depend on IMAGE for the collection and safe disposal of biomedical waste. The organisation was set up as a project under IMA, which holds a contract with the state government for handling medical waste.
However, an investigation into alleged tax fraud by IMA also implicated IMAGE. Although hospitals were making payments to IMAGE for waste disposal, the agency failed to produce its own GST registration documents or any proof linked to a valid PAN number before the DGGI.
Further scrutiny revealed that IMAGE was not a separate legal entity but merely a project of IMA, leading to the conclusion that it was operating illegally.
Following DGGI’s recommendation, the state GST department officially cancelled IMAGE’s GST registration, effectively bringing its operations to a halt.
The cancellation of IMAGE’s GST registration is part of a larger legal dispute between IMA Kerala and tax authorities. In July 2024, the Kerala High Court ruled that IMA is liable to pay GST on the supply of goods and services to its members.
The court upheld the amendment to Section 7(a) of the Finance Act, which inserted Section 7(aa), bringing associations like IMA under the GST ambit.
IMA Kerala is currently facing serious allegations of tax evasion, with unpaid GST dues estimated at ₹45 crore. The case has intensified scrutiny of its financial dealings, and IMAGE has now become the latest casualty in this ongoing battle.
With IMAGE’s GST registration cancelled, the biomedical waste disposal system in Kerala is in jeopardy. Experts warn that any disruption in waste collection could lead to severe environmental and health risks, including the improper disposal of hazardous medical waste.
The state government has yet to announce an emergency plan to address the crisis.
As hospitals and clinics scramble for alternatives, stakeholders fear that the situation could escalate, putting both public health and environmental safety at risk.
On Monday, the Madurai division bench of Madras High Court rejected a plea to release Kerala registered vehicles involved in the illegal dumping of medical waste in Tamil Nadu and ordered officials to confiscate vehicles used for the offence to instil fear in the offenders.
KSPCB Chairperson Sreekala S told South First that the trucks were owned by a private agency, and the PCB would not be responsible for taking any legal action to reclaim the seized vehicles.
Earlier, the Kerala High Court strongly criticised the state government over its failure to manage waste properly, following the discovery of illegally dumped medical waste in Tamil Nadu.
The dumped materials, which included used syringes, personal protective equipment (PPE) kits, and sensitive medical records, were found discarded across Tamil Nadu, originating from hospitals in Kerala.
The illegal dumping of such hazardous materials not only poses serious environmental risks but also points to significant lapses in the enforcement of waste management regulations.
The high court has called for a comprehensive investigation into how the waste was transported across state borders and who is responsible for these violations.
(Edited by Muhammed Fazil with inputs from Sreelakshmi Soman.)
