The operators behind the failed REDcycle program have been charged by Victoria's Environment Protection Authority.
RG Programs and Services, which operated the nation's largest soft plastic recycling scheme, is facing three counts of failing to comply with the EPA's information-gathering process.
The REDcycle program was paused last month after it was revealed millions of plastic bags were stored in warehouses instead of being recycled.
More than 3000 tonnes of soft plastics have since been found in nine warehouses across Melbourne's outer suburbs and in northeast Victoria, the EPA says.
The authority alleges RG Programs and Services provided only partial information of known storage sites.
"Additional information was obtained through investigations by EPA officers, including working directly with trucking and logistics companies," the authority said in a statement.
"The EPA is not satisfied there is a reasonable excuse for this non-disclosure, leading to the charges."
The maximum penalty for each offence is more than $165,000.
Investigations are continuing, with the EPA flagging the possibility of further charges for breaches of environmental laws.
The authority is also working with the nine warehouses and the Department of Land, Water and the Environment to find a way to safely recycle the plastics.
A spokesperson for REDcycle told AAP it was continuing to cooperate openly with the EPA.
"Given this is now a legal matter we are not in a position to comment further," the spokesperson said in a statement.
"What we can say is that our commitment to diverting soft plastics from landfill and working with partners to recycle these into useful community products remains absolute."
