Bhopal gas tragedy: SC dismisses Centre's plea for additional compensation for victims

Bhopal gas tragedy verdict: The Supreme Court dismissed the central government's plea seeking additional compensation for the 1984 Bhopal gas tragedy victims. Citing “gross negligence” by the Centre, the top court said while dismissing the Centre's plea that it should utilise Rs 50 crore lying with the Reserve Bank of India (RBI) to satisfy the pending claims. 

The SC also noted that the Union Government failed to take out insurance policies as directed by the top court. The Supreme Court bench was quoted as saying by Bar and Bench, "The method to impose greater liability on UCC is not warranted. We are disappointed in the union for not having addressed this. Nearly 6 times compensation has been disbursed to the victims compared to the pro rata. Centre to use Rs 50 crores lying with RBI to address the needs of the claimants in the Bhopal gas tragedy case. If it is reopened, then it will only work in favour of UCC by opening a pandora's box and will be to the detriment of the claimants."

A five-judge constitution bench of the top court headed by Justice SK Kaul was hearing arguments of a curative petition seeking additional compensation for the victims. The bench also comprised Justices Sanjiv Khanna, Abhay S Oka, Vikram Nath, and JK Maheshwari. The bench heard arguments from Attorney General of India R Venkataramani who represented the Centre and Advocate Karuna Nundy and Senior Advocate Sajay Parikh who appeared on behalf of the organisations and victims of the disaster. They were countered by Harish Salve who represented Dow Chemicals. 

The Centre also sought additional compensation of around Rs 7,844 crore from Dow Chemicals for the victims of one of the most catastrophic industrial disasters globally. The Centre sought this amount over and above the $470 million already paid by the Union Carbide Corporation (UCC) in a settlement in 1989.

This, however, is not the first time the Central government has sought additional compensation for the victims affected in the Bhopal gas tragedy case. The Central government, led by Congress, had filed a curative petition seeking enhanced compensation in the Supreme Court in December 2010. 

During this hearing, Salve, appearing on behalf of the successor firms of the UCC, said the Centre’s stand citing depreciation of the rupee since 1989 cannot be a ground for seeking a top-up of the compensation for the victims. 

Salve said at the time, “There are series and series of affidavits starting from 1995 and ending as late as 2011, where the Union of India has opposed every single attempt to suggest that the settlement (of 1989) is inadequate. Affidavits upon affidavits were filed.”

He added the settlement of $470 million or Rs 38,736,932,820 took place due to a judicial order passed by a district court in 1987. The senior lawyer then stated how soil contamination was discovered first in 1997 after the Central Bureau of Investigation (CBI) took over the entire premises of the fertiliser manufacturer in 1984 after the tragedy. The Madhya Pradesh government of the time also cancelled the lease to Union Carbide India Limited (UCIL). 

Salve had also raked up allegations such as the former Prime Minister Rajiv Gandhi meeting the late Warren Anderson at a hotel in Paris prior to the settlement in 1989. Anderson had retired as the UCC chairperson by that point.

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