The Environment (Protection) Act was passed to protect and improve the environment as also to prevent hazards to human beings and other living creatures, plants and property. Section 2 (e) of the Act defines “hazardous substance” as any substance or preparation which, by reason of its chemical or physio-chemical properties or handling, is liable to cause harm to human beings, other living creatures, plants, microorganism, property or the environment.” A study on the legal control of hazardous substances is incomplete without analyzing the 1987 Amended Provisions of the Factories Act of 1947 relating to hazardous processes. The incident at Bhopal prompted the central government to amend the Factories Act of 1948 with the aim of correcting its inadequacies in order to protect the workers and to control environmental pollution. The Public Liability Insurance Act 1991 was passed with a view to providing immediate relief to the persons affected by accidents occurring while handling any hazardous substance.