With rapid urbanization and ever increasing population growth there has been a substantial increase in the generation of solid waste with contamination of air, water and land resources. The solid wastes from different urban centers, when not managed properly, have been creating problems for human health and environment. Some of the solid wastes have been proved to be highly toxic and infectious. The uncontrolled dumping of such wastes have not only brought about increasing health hazards but also causing surface and ground water contamination and posing serious environmental threat to the human being. Bio-medical waste is as waste that is generated during diagnosis, treatment or immunization of human beings or animals or research activities. It includes sharps, solid waste, disposables, anatomical wastes, cultures, discarded material and is contaminated with body fluids (such as syringes, needles, ampoules, organs, body parts, placenta, dressings, disposable plastics and microbiological wastes). Bio-medical waste is generated from healthcare establishments and also some small sources as blood banks, laboratories and research institutes. Bio-medical waste contaminated by chemicals becomes hazardous. These chemicals include formaldehydes and phenols (used as disinfectants), mercury etc. Thus, taking account of the seriousness of the problem, the researcher through this paper has tried to explain the loopholes that our legal system is facing at present and also give some suggestions with respect to the same.