The cause of the disaster remains under debate. The Indian government and local activists argue slack management and deferred maintenance created a situation where routine pipe maintenance caused a backflow of water into a MIC tank triggering the disaster. UCC contends water entered the tank through an act of sabotage.
The owner of the factory, UCIL, was majority owned by Union Carbide Corporation (UCC), with Indian Government-controlled banks and the Indian public holding a 49.1 percent stake. In 1989, UCC paid $470m ($907m in 2014 dollars) to settle litigation stemming from the disaster. In 1994, UCC sold its stake in UCIL to Eveready Industries India Limited (EIIL), which subsequently merged with McLeod Russel (India) Ltd. Eveready Industries India, Limited, ended clean-up on the site in 1998, when it terminated its 99-year lease and turned over control of the site to the state government of Madhya Pradesh. Dow Chemical Company purchased UCC in 2001, seventeen years after the disaster.
Civil and criminal cases are pending in the