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BHOPAL DOCUMENTS
Bhopal, economic and social impact

Bhopal
Economic and Social Impact

There has hardly been any systematic effort to document the social and economic impacts of the disaster. Official information on orphaned children and families that lost their breadwinners in the immediate or long aftermath is scanty, if available at all. Over 70% of the exposed population has been in the unorganized sector, with people earning subsistence wages through day labour or petty trade. A large number of men and women who pushed hand carts, carried loads, dug soil, repaired cars and did other jobs can no longer pursue their trades after being exposed to Carbide's gases. Gas exposed factory workers in textile and paper mills are more sensitive to occupational hazards and are absent from work due to illness as much as 15 days in a month. Over 90 % of the survivors have received a compensation of Rs 15000 which is just enough for the cost of medicines for five years, and many of these people will be in need of medical care till the end of their lives. Given the complete inadequacy of official rehabilitation efforts the loss of regular income has driven tens of thousands of families to chronic starvation conditions. Loss of income also makes people borrow money from local money lenders who charge upto 200% interest so that chances of paying back are low and debts keep growing. Gas exposed women's inability to carry out reproductive functions have led to their desertion by their husbands and gas exposed young women continue to suffer social discrimination in marriage.



Environmental problems

Thirteen years after the disaster, Union Carbide's toxic legacy continues to harm people in more ways than one. Communities in the vicinity of the Carbide factory continue to be exposed to toxic chemicals that are injurious to the lungs, liver and kidneys and can cause cancer. Water in over 200 wells around the Carbide factory have been declared unfit for human consumption by the municipal authorities. This is a result of routine dumping of hazardous chemicals during the operation of the factory thus contaminating soil and groundwater in and around the factory premises. Analysis carried out by the Citizens Environmental Laboratory (CEL), Boston in 1991 show presence of toxic chemicals in the community wells around the factory. This report presented at the company's annual shareholders meeting drew the attention of the senior officials to the problem. The Corporation gave the job to Arthur D. Little Inc. who sponsored a collaborative investigation with an Indian government agency in 1994 in to the matter of contamination caused by dumping chemicals inside the factory premises. This study done without public knowledge recommends a fuller investigation for better assessment of the environmental contamination. The findings of this study confirm the worst apprehensions of activists and people in the community. Meanwhile, in 1996 the company management has dug up bottom soil from the "Solar Evaporation Ponds" and buried the heavily contaminated sludge under three metres of farm soil in a bid to cover up evidence of environmental damage. Survivors' organizations have been calling for an official assessment of the damage wrought by Union Carbide so that the corporation could be asked to pay the costs of environmental rehabilitation and supply of safe drinking water for the affected communities.



Economic Social and Environmental rehabilitation

The government programmes for economic rehabilitation have been badly designed and only few have been implemented. While an estimated population of 50,000 is in need of alternate jobs currently less than 100 gas victims have found employment under the government's scheme. 42 worksheds that had been built between 1985 to 1987 were allotted to so called NGOs between 1994 to 1996. However, apart from two worksheds employing about 50 women none of them have ever been made available for employment of the survivors. Official promises have been on record that 50 % jobs in the Railway Coach Repair Factory would be reserved for gas affected people. However, only 205 of the 1000 employees of this factory are gas affected persons. In 1987 a special industrial area for training and employment of over 10,000 survivors was inaugurated and 152 worksheds were constructed at a cost of Rs.8 crores. However, till date not a single survivor has found any employment. A programme offering women survivors tailoring jobs ran successfully from 1986 to 1992 employing 2300 women and making an yearly profit of Rs.1 crore. The rehabilitation centres where these jobs were offered were also places where women survivors could gather, share their concerns and organize themselves. However, this programme was terminated without any reason in July 1992.
Till date the government has no record of the social condition of the persons who have been widowed, orphaned, or have been permanently disabled as a result of the gas disaster. The state government has deemed its work of social rehabilitation to be over by constructing 2500 houses and a few schools. There has been no official attention towards the urgent need of life long pension for widows, orphans, chronically ill and disabled survivors. The Supreme Court's final order with regard to provision of insurance coverage to about one lakh children likely to suffer delayed effects of the lethal gases is also being ignored by the Central government.
Despite the expenditure of over Rs. 70 crores in environmental rehabilitation basic necessities such as clean drinking water and sanitary facilities remain unavailable to majority of the gas affected communities.



Legal aspects

Subsequent to the disaster the Indian government through the Bhopal Gas Leak Disaster (Processing of Claims) Act in March 1985 arrogated to itself, sole powers to represent the victims in the civil litigation against Union Carbide. On behalf of the victims the Indian government filed a suit for compensation of more than 3 billion US $ in the Federal Court of the Southern District of New York. However, in May 1986 the case was sent to the Indian courts on grounds of forum non-convenience, under the condition that Union Carbide would submit to their jurisdiction. During the proceedings at the Bhopal District Court, Union Carbide was directed to pay an interim relief sum of Rs.350 crores so that the delay in the adjudication of the case does no adversely affect the claimants. However, Union Carbide refused to pay interim relief and its appeal against this decision reached the Supreme Court. On Feb 14,1989 in a sudden departure from the matter of interim relief , the Supreme Court passed an order approving the settlement that had been reached between the government of India and Union Carbide without the knowledge of the claimants in Bhopal. According to the terms of the settlement, in exchange of payment of US $ 470 million the Corporation was to be absolved of all liabilities, criminal cases against the company and its officials were to be extinguished and the Indian government was to defend the Corporation in the event of future suits. The settlement sum, nearly one-seventh of the damages initially claimed by the government, while being far below international standards is also lower than the standards set by the Indian Railways for railway accidents. There were widespread protests by the Bhopal victims against the betrayal by the government and many organizations and individuals including prominent members of the parliament supported the call to oppose the infamous settlement. Several petitions seeking review of the order on settlement were filed and the Supreme Court announced its revised judgement on October 3,1991. This final judgement upheld the settlement amount paid by Carbide but directed the Indian government to make good any shortfall during the distribution of compensation. Also the criminal cases against the Corporation and its officials were reinstated in the final judgement. The Supreme Court also directed Union Carbide to finance a 500-bed hospital for the medical care of the victims.



Compensation

The amount paid as compensation (Rs. 715 crores) has multiplied as a result of the increase in the value of the dollar and the accruing interest. Out of this amount, about Rs. 850 crores have been paid to nearly 3.2 lakh claimants and a balance of about Rs. 1100 crores remains to be disbursed. The procedures for compensation disbursement have been tortuous and thoroughly unjust. More than 90% of the claimants have been paid a sum less than Rs. 25,000 as compensation for personal injuries out of which nearly Rs. 10,000 have been routinely deducted against interim monetary relief paid by the government from 1990. The remaining money does not half cover the medical expenses borne by the claimants in the last several years let alone provide for future expenses. Out of the 15,168 death claims adjudicated 65% have been rejected or converted into personal injury cases. Judges at the claim courts are completely ignorant of the medical consequences of the toxic exposure and the administration of compensation is riddled with corruption so that claimants inability to pay bribes often results in denial of compensation. In response to an official announcement for fresh registration of claims in December 1996 over 4 lakhs claims have been filed. Majority of these claims have been filed by persons residing outside the gas affected area including elite neighbourhoods and it is most likely that genuine victims will be the ultimate loser in the disbursement of compensation.



Criminal Case

A First Information Report for causing death by negligence and a number of other serious offences was registered on December 3,1984 at the local police station. On December 1,1987 the government's prosecution agency the Central Bureau of Investigation (CBI) pressed charges in the Bhopal District Court against UCC and its Asian and Indian subsidiaries namely Union Carbide Eastern (UCE), Hong Kong and Union Carbide India Limited (UCIL) respectively as well as nine officials including the then Chairman, Warren Anderson. The twelve accused were charged under sections 304 (Part IF), 326, 324 and 429 of the Indian Penal Code, with culpable homicide, causing grievous hurt, causing death of and poisoning animals and other serious offences punishable by imprisonment upto ten years and fines. The Corporation blamed a fictitious saboteur and later a disgruntled worker for causing the disaster and organized public relations campaign to distance itself from criminal liability. The CBI with the cooperation of the workers in the factory presented a strong case linking key managerial decisions to the disaster. As the proceedings in the Bhopal District Court began, Union Carbide and its officials chose to ignore the Court's summons claiming that Indian courts had no jurisdiction over them. Finally Anderson was served summons through the Interpol and on his repeated refusal to obey them, the Chief Judicial Magistrate (CJM),Bhopal proclaimed him an absconder. After the criminal immunity granted under the settlement was revoked by the October 1991 final judgement of the Supreme Court a non-bailable arrest warrant was issued against Anderson and the shares of Union Carbide in its Indian subsidiary were attached by the CJM, Bhopal. Five years have passed since the issuance of arrest warrants against the accused Corporation and its officials, yet the Indian government has not taken any steps towards seeking the extradition of the foreign accused. Union Carbide deregistered UCE, Hong Kong in 1992 and now operates in Asia through Union Carbide Asia Ltd. and Union Carbide Asia Pacific Inc.(UCAP) both wholly owned subsidiaries of the parent US based Corporation. Ramasami Natarajan the former CEO of UCE is now the President of UCAP, Hong Kong. The CBI has expressed , in Court, its inability to proceed against UCE as it has deregistered itself. On Sep. 13, 1996, in response to an appeal moved by Keshub Mahindra and other accused officials of Union Carbide India Ltd. (UCIL), the Supreme Court passed an order diluting the charges of culpable homicide to death caused by negligence (Sec. 304A of the I P C), thereby reducing the maximum sentence from 10 years to 2 years. Trial of the Indian accused are currently going on before the CJM, Bhopal, and only five of the over two hundred witnesses for the prosecution have testified in the last four months. Meanwhile, the managers of Eveready Industries India Limited (new name of Union Carbide India Ltd.) have dismantled most of the Bhopal factory that is supposed to be under the custody of the CBI as evidence in the criminal case. In the absence of any preemptive action by the CBI , survivors organizations sought judicial and executive intervention into the erasure of the memory of the disaster as well as destruction of evidence. However, these attempts were unsuccessful.


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