People who claim they were hurt by Coca-Cola bottling operations in a southern India village can seek compensation from the company, according to legislation that sets up a claims tribunal in the Indian state of Kerala.
India, a nation of 1.17 billion people, is one of Coca-Cola's most important emerging markets. The bill, passed in the state legislature, raises the heat in a dispute that had been on simmer.
The bill stems from complaints against Coca-Cola surrounding a bottling plant in the village of Plachimada. Seven years ago, protesters accused the Atlanta-based company of pollution and water depletion. Coca-Cola closed the plant in 2004.
Coca-Cola says a "flawed process" created the bill to set up a claims process. It called the legislation "devoid of facts, scientific data or any input from or consideration given to the company." Coca-Cola said it was not offered a chance to present facts, share independent data or "engage in dialogue" before the bill was approved.
Coca-Cola said scientific studies by various government bodies in India have not shown Coca-Cola's bottling operations to be responsible for the damages alleged in this bill, and support the company's contention that its plant did not adversely affect groundwater levels. "The government's decision to proceed with no regard for facts or real data sets dangerous precedent," the company said in a statement.
The legislation sets up a three-person tribunal to consider claims. The tribunal can summon people and documents and examine witnesses, said Amit Srivastava of the India Resource Center, an advocacy group.
"This is a landmark moment for the people of Kerala and India," said R. Ajayan of the Plachimada Solidarity Committee, which has agitated against Coca-Cola. "People's will in Kerala has now become law of the land."
One year ago, a committee established by Kerala's state government made a non-binding recommendation that Coca-Cola be required to pay about $47 million in damages for alleged mismanagement of water resources in Plachimada.
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