Was the ship sold to an India scrap-yard while the Norway was in European waters?
I don't think so. From what I've read, the sale didn't occur until the Norway was anchored off Port Klang Malaysia.
Was the SS Norway while it was recently tied to a pier in Germany ever under European registry?
Can you explain how a Bahamas' registered cruise ship falls under European laws after it leaves European waters?
As for UN treaties, which UN treaty are you referring to?
You have a very poor opinion of the skill of the workers in India, assuming they can't disposal of abestos, or other dangerous substances, in accordance with International standards. Disposing abestos properly isn't that hard to do. The skills necessary take approximately 8 hours to learn.
Here's a link to video course made in America to meet American OSHA standards. The entire course of instruction is 122 minutes in length.
Here's another link for the University of Wisconsin Milwaukee campus web site on Abestos abatement.
If the workers can be educated to safely handle cutting tourches, grinders, and be qualified as riggers, they can be educated to handle abestos too. It's not rocket science.
Why do you assume only western nations can handle abestos safely? India's workers can if properly trained.