Govt bars Dow unit from selling 4 pesticides

The Centre has cancelled registration certificates of four pesticides granted to Dow AgroSciences, an Indian subsidiary of the Dow Chemical Company, on allegations that it had paid bribes to get the certificates.

The Centre has cancelled registration certificates of four pesticides granted to Dow AgroSciences, an Indian subsidiary of the Dow Chemical Company, on allegations that it had paid bribes to get the certificates.

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In 2007, the US Securities and Exchange Commission (SEC) accused Dow AgroSciences India Pvt Ltd — a fifth tier Dow Chemical Company — of making “improper payments” to Indian government officials for the registration under the Insecticides Act.

The “improper payments” were estimated at $200,000 (Rs 87.8 lakh) between 1996-2001.

Without admitting or denying the allegations before the SEC, Dow Chemical Company in 2007 consented to pay a $325,000 (R142 lakh) civil penalty.

In India, a criminal case — probed by the CBI — is still in court. Also, no action was taken against the company.

A public outcry over a two-year jail term for officials of the erstwhile Union Carbide and a meagre compensation for the 1984 Bhopal tragedy victims, however, nudged the government to reopen the bribery case.

Last year, the government barred public procurement of products of the Dow unit — earlier known as DE-Nocil Crop Protection — for five years and initiated the process for cancelling registration of four pesticides.This process ended last month with the cancellation order, but gave the company two years to dispose of existing stock.