Union Carbide Corporation (UCC) and Dow Chemicals have taken exception to the Indian government seeking Rs7,800 crore in enhanced compensation for the Bhopal gas victims.

The two companies issued official statements yesterday stating they were puzzled by the Indian government's "abrupt turnaround" to challenge a "fair, final and irrevocable settlement" for $470 million arrived at in 1989.

The statements, issued from Houston and Michigan in the US, respectively, came hours after the Supreme Court's taking on board the government's curative petition for over Rs7,800 crore in enhanced compensation for victims of the Bhopal gas tragedy.

Both the companies wondered why the government had chosen to re-open the compensation issue when the Welfare Commissioner - the official in charge of overseeing compensation for Bhopal victims - had as recently as November 2010 filed an affidavit in the SC urging it against the same. According to UCC, nothing had occurred over the past three months to justify a change in the government's option.

Echoing UCC's views, Dow said: "What is not understandable is the abrupt turnaround in the GoI's long-held defence of the fair and final legal agreement that resolved the claims related to the tragedy."

According to Dow, the SC had twice in the past, validated the agreement and should do it again.

According to the companies, the re-opening of the 1989 settlement would act as a deterrent to future foreign investments in the country. UCC said the government's action would serve only to undermine the global perception of India as a nation committed to the rule of law and the integrity of legally-binding agreements.

Meanwhile, Dow terming the UPA government's challenge an "ill-advised action" said it would hurt the image of India as a nation committed to adhering to accepted legal principles. "Dow never owned, operated or inherited Union Carbide India Limited's Bhopal site," it said.

Meanwhile, the Supreme Court acting on the government's curative petition for enhanced compensation of over Rs7,800 crore for victims of Bhopal gas tragedy, yesterday issued notices to Union Carbide Corporation (UCC), Dow Chemicals and other allied companies. According to the government, the tragedy had now taken "catastrophic proportions". The five-judge bench will also take up for hearing on a daily basis another curative plea, filed by the CBI. The plea, hearing on which will start from 13 April, is aimed at restoration of the charge of culpable homicide not amounting to murder.

The Supreme Court yesterday agreed to review its judgments in the criminal and civil cases, under which the accused allegedly got away with light punishment and Union Carbide paid a meagre compensation.

Apart from Dow Chemicals and Union Carbide, Eveready Industries India Ltd and McLeod Russel have also been served notices on the plea seeking up to Rs7,844 crore from them to pay additional compensation to the victims and their families.

The centre is seeking a review of the court's 1989 judgment, which under which a settlement of $470 million was arrived at between the union government and Union Carbide towards compensation.

Six months ago, the accused in the criminal case - Keshub Mahindra, V P Gokhale, Kishore Kamdar, J Mukund, S P Chaudhary, K V Shetty, S I Quereshi and Union Carbide India Limited had been asked by the court to respond to the CBI's plea for invoking the provisions of the stringent Section 304-II of the IPC against them.

The agency had sought review of the court's 1996 judgment, which diluted the charges to Section 304-I of the IPC dealing with rash and negligent act which allows a maximum punishment of two years imprisonment. Conviction under Section 304-II, which deals with the offence of culpable homicide not amounting to murder, allows a sentencing of up to 10 years in prison.