India Court Affirms Bhopal Deal but Lifts U.S. Firm’s Immunity

India’s Supreme Court on Thursday upheld a $470-million settlement but ordered new criminal proceedings against Union Carbide Corp. in the 1984 Bhopal gas disaster, which killed more than 3,800 people.

The five-judge panel lifted the criminal immunity granted to the Danbury, Conn.-based company and its Indian subsidiary in the world’s deadliest industrial disaster. The decision also frees the money, already paid by Union Carbide, for distribution to victims and their families.

Under terms of the 1989 settlement, all criminal proceedings had been dropped, including a charge of culpable homicide against former Union Carbide Chairman Warren Anderson.

But in its unanimous decision, the Supreme Court said “the quashing of the criminal proceedings was not justified. . . . It is a matter of importance that offenses alleged in the context of a disaster of such gravity and magnitude should not remain uninvestigated.”

Critics have argued that the settlement was too low and said Union Carbide should be brought to trial. They allege that the disaster was the result of company negligence. Union Carbide maintains it was sabotage by a disgruntled employee.