Govt plea in SC to enhance compensation for victims
After a lot of debate on whether Dow, which took over Union Carbide, should be made liable for enhanced compensation to Bhopal gas victims, the Centre on Friday filed a curative petition in the Supreme Court against its two verdicts on civil suits related to the compensation issue.
The first verdict of the apex court, in 1989, gave approval to the out-of-court settlement between the Indian government and United States multinational Union Carbide Corporation for $470 million in compensation to the Bhopal gas victims.
The second judgment, in 1991, had upheld the special law passed by Parliament giving “sole” right to the Centre to fight for civil liabilities on behalf of the victims in courts either in the US or in India.
Seeking reviews of both judgments, the Centre in its curative petition has sought enhanced compensation from Dow, raising three main grounds on facts as well as the law.
In the petition drafted by Attorney-General G.E. Vahanvati, the Centre has sought three separate claims from Dow on the ground that the earlier compensation of $470 million approved by the apex court was substantially “inadequate” considering the new facts that had emerged subsequently in one of the biggest industrial tragedies in the world.
Under the “first claim” the company has been given “three options” to pay the enhanced compensation. As per the first option, it should pay $1,129.19 million (`5,263.16 crore) as monthly Libor, or $1,194.13 million (`5,565.84 crore) as half yearly Libor, or $1,241.38 million (`5,786 crore) yearly Libor.
As per the second option, Dow should pay $707 million (`3,298.69 crore), and as per the third option it should pay $629.99 million (`2,936.36 crore).
The second claim from Dow was for `1,747.15 crore on account of the actual expenditure incurred by the Centre and Madhya Pradesh government towards the relief and rehabilitation of victims, which should actually have come from the company.
And as per the third claim, a direction of the apex court is sought to Dow to pay `315.7 crore on account of remedial measures to be undertaken for improving the environment of a vast area surrounding the UCC plant at Bhopal, stating that the ecology, including ground water, has been contaminated due to the leakage of dangerous chemicals from the defunct factory.
The main factual and legal grounds for seeking enhanced compensation were that when the apex court gave its verdicts in 1989 and 1991, the death toll was put at nearly 2,000 and the number of injured persons was estimated at 50,000. But later the actual deaths accounted for were 5,295 and 5.27-lakh injuries, which was far higher than the initial estimates and the amount of $470 million settled between the Indian government and UCC was found to be grossly inadequate as it had to be spread over such a large number of victims.
The petition was drawn up by Mr Vahanvati after taking into account various aspects of the complex matter, including value and devalue of currencies during the 26 years after the tragedy struck Bhopal in December 1984.
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