Madhya Pradesh chief minister Shivraj Singh Chauhan urged the government to boycott next year's London Olympics because of the event's sponsorship deal with Dow Chemical company, according to local media reports.
Indian Olympic Association acting president Vijay Kumar Malhotra was not immediately available for comment and secretary general Randhir Singh, currently in Dubai, would not confirm the reports.
Dow bought US chemical firm Union Carbide, whose Bhopal plant in the state of Madhya Pradesh leaked toxic gases in 1984, killing thousands of people in the world's worst industrial accident.
Local media said Chauhan had written a letter to Sports Minister Ajay Maken, requesting him to boycott the Games.
"Liabilities related to the disaster have not been fully settled and are a subject of litigation to which the Indian government is a party," Chouhan was quoted as saying.
Instead of sponsoring the Games the company should spend the money on the survivors, he added.