Apple's iPhone maker, Tata, is at the center of a major environmental controversy in India, accused of contaminating a water source essential to farmland near its factory in Tamil Nadu. The factory, located in Hosur, was built by Tata after it acquired a separate iPhone factory from Pegatron in 2024.
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According to Reuters, the Tamil Nadu Pollution Control Board (TNPCB) has issued a warning to Tata, underlining that it may be forced to close the plant if immediate corrective measures are not taken.
The Tata plant is responsible for manufacturing various iPhone components, including back panels, which are a critical part of the production chain of Apple's popular devices. However, local farmers have repeatedly raised complaints with the TNPCB, alleging that wastewater from the plant is polluting their land and open wells, which are a key source of water for their crops. These complaints led to five inspections by the regulator between December 2025 and May 2026.
During these inspections, inspectors found that the sewage discharge had caused an overflow in a Tata rainwater harvesting tank. This incident resulted in the contamination of groundwater in open wells located in the adjacent agricultural lands. Despite the fact that Tata was warned about this situation as early as December 23, 2025, the TNPCB says that the company has not addressed the complaint effectively.
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Tata, for its part, denies the allegations. A company spokesman told Reuters that an independent analysis had concluded that Tata was fully compliant with regulations. The spokesman also denied that the company had failed to take action, saying it had responded to the TNPCB. Despite the company’s assurances, the TNPCB has taken the final step of asking Tata to explain why it should not close the plant and ordering the disconnection of power supply to the facility.
Tata has been expanding iPhone manufacturing in India for about three years. First, in 2023, it bought Wistron Karnataka plant and then partnered with Pegatron. The two companies committed to investing over $1 billion to expand iPhone production in Tamil Nadu. That 2024 partnership saw Tata take a majority stake in the plant, which is now under threat from regulators.
This situation has serious consequences for both the local community and Tata. For farmers, water contamination can mean crop loss and financial ruin. For Tata, the threat of plant closure is a serious blow to its production capacity and investment in the region. In addition, this controversy could affect the company's reputation, both in India and internationally, given the growing interest in environmental issues.
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This case highlights the need for stricter controls and regulations on environmental management by large industries. It also highlights the importance of transparency and accountability from companies, particularly when it comes to protecting natural resources and local communities. As Tata and the TNPCB continue their negotiations, the outcome of this case could set a precedent for how similar issues are handled in the future.
