Sigachi Pays Rs 42 L to 54 Kin Of Dead, ‘Forgets’ To Mention Rs 1-cr Compensation Promise
The matter was adjourned to January 29, 2026, for further hearing and updates on the investigation and compensation disbursement.
Hyderabad: Sigachi Industries on Wednesday informed the Telangana High Court it had paid a compensation of Rs 42 lakh to the families of 54 workers, who died in an explosion at Pashamylaram in June 2025. Though the company said this payment may not constitute a final settlement of all claims, it did not refer to its promise of paying Rs 1-crore compensation to each of the workers’ families.
While hearing a public interest litigation (PIL) filed by retired scientist Kalapala Babu Rao, who alleged that serious lapses and regulatory failures led to the fatal blast, the division bench comprising Chief Justice Aparesh Kumar Singh and Justice G.M. Mohiuddin reviewed the progress of the investigation and the status of compensation.
The Bench, however, clarified that it was not monitoring or supervising the investigation and that its role is limited to eliciting facts.
During the hearing, Sigachi Industries informed the court through its counter-affidavit that it has paid Rs 42 lakh as compensation to the family of each deceased worker, though this may not yet be the final.
The company did not specifically refer to Rs 1 crore compensation that it promised to make in the counter-affidavit.
However, the counsel for the petitioner, Vasudha Nagaraj, raised objections to the Sigachi Industries’ claim that the compensation was disbursed, contending that the company had deviated from its promise to pay Rs 1-crore compensation to each of the deceased worker’s family. She sought directions to the state government to clarify the issue.
Senior counsel S. Niranjan Reddy, appearing for Sigachi Industries, submitted that statutory compensation payable under various enactments has been disbursed, though the payments may not constitute the final settlement of all claims.
He also informed the court that the company’s managing director was arrested and the company has been cooperating with the investigating agencies. He requested the High Court to ensure that the trial court does not feel pressurised due to the PIL.
Additional advocate-general T. Rajinikanth Reddy informed the High Court that the investigation has progressed substantially. Though the Sigachi MD was arrested, he said four other accused are still at large.
He further informed the court that over 300 witnesses, including officials from 16 regulatory departments, have been examined. “The investigation is in its final stages and a chargesheet is expected to be filed shortly. As of now, the investigation has not disclosed any culpability,” said the AAG.
The High Court recorded that eight workers who were initially reported missing have since been officially declared dead. The compensation on par with other deceased workers is in the process of being disbursed.
Amicus Curiae Dominic Fernandes sought additional time to examine the detailed status report and applicable statutory provisions. The matter has been adjourned to January 29, 2026, for further hearing.
