State Passes Law Allowing Compensation from Coca-Cola
State Passes Law Allowing Compensation from
Coca-Cola
Coca-Cola Legally Bound to Follow Orders of
Tribunal on Compensation
For Immediate Release February 24, 2011
New Delhi: In an unprecedented move, the state legislature of Kerala in India passed legislation today allowing individuals negatively affected by Coca-Cola’s bottling operations in Plachimada to seek compensation from the company.
The legislation sets up a tribunal – a three-member body – that has the powers to adjudicate on matters related to claims of compensation as a result of Coca-Cola’s reckless operations in Plachimada.
The tribunal has also been granted additional legal authority, including the power to summons individuals and documents, as well as seek and examine witnesses.
The adoption of the legislation by the Kerala state legislature legally binds Coca-Cola to follow the directives of the tribunal.
The legislation is based on the report and
recommendations of a High Power Committee which Using the “polluter
pays principle,” the High Power Committee had recommended
that Coca-Cola be held liable for Indian Rupees 216 crore
(US$ 48 million) for damages caused as a result of the
company's bottling operations in Plachimada.
In its
report, the High Power Committee said that, “The
Committee thus has compelling evidence to conclude that the
HCBPL has caused serious depletion of the water resources
of Plachimada, and has severely contaminated the water and
soil.” HCBPL is the Hindustan Coca-Cola Beverages Private
Limited, a subsidiary of Atlanta based Coca-Cola
Company. “The Committee has come to the conclusion that
the Company is responsible for these damages and it is
obligatory that they pay the compensation to the affected
people for the agricultural losses, health problems, loss
of wages, loss of educational opportunities, and the
pollution caused to the water resources,” added the
report. “This is a landmark moment for the people of
Kerala and India,” said R. Ajayan of the Plachimada
Solidarity Committee which has been actively involved in
the campaign since its inception. “The passage of the
bill means that people’s will in Kerala has now become
law of the land,” said R. Ajayan. Community leaders in
Plachimada have vowed to continue the campaign. Activists
are demanding that the state government also charge
Coca-Cola with criminal offenses because of the laws the
company has violated. Coca-Cola’s bottling plant in
Plachimada has been shut down since March 2004 as a result
of the community-led campaign which accused Coca-Cola of
exacerbating water shortages in the area and
pollution. The campaign against Coca-Cola in Plachimada
has also enjoyed tremendous international support, with
colleges and universities in the US, UK, Canada and Norway
taking action against Coca-Cola. Two other campaigns –
in Kala Dera in Rajasthan and Mehdiganj in Uttar Pradesh
– are also seeking closure of the local Coca-Cola
bottling plant. “This is a massive victory for the
community of Plachimada and their supporters who have
campaigned successfully all the way from the community to
the state legislature, and that too against a global
multinational corporation. This should serve as a powerful
reminder to corporations across India that there are severe
repercussions for operating recklessly,” said Amit
Srivastava of the India Resource Center, an international
campaigning group.
ENDS