Dow may have escaped liability: Khursheed

14 Jun 2010

The government will examine the deal under which Dow Chemical bought Union Carbide to check on Dow's liability for cleaning up Bhopal's environment, corporate affairs minister Salman Khursheed told the Calcutta Telegraph in an interview.

''We will have to examine the nature of the purchase agreement by which Dow Chemical bought over Union Carbide and see whether it absolves them of financial liability for Bhopal,'' he said.

Khursheed added that if Dow had legally protected or indemnified itself against the liabilities of Carbide, it might be able to wriggle out.

''In principle, as a lawyer, I don't think Dow Chemical may be held responsible for the liability. A successor's liability depends on the arrangement under which the transaction has taken place.''

The minister, however, added the analogy of a ''buyer of a house (who) cannot escape paying an electricity bill left unpaid by claiming he was unaware of the bill''.