In a significant development before the Telangana High Court, Sigachi Industries has detailed the compensation paid to the victims of the catastrophic explosion at its Hyderabad facility in June 2025, which claimed the lives of 54 workers. The company clarified that the ₹1 crore compensation per deceased worker's family, announced earlier, is a combined figure, with ₹42 lakh being its share and the remaining portion to be covered by the government.
Court Hearing Reveals Compensation Breakdown
During a hearing on Wednesday, Sigachi Industries, through its senior counsel S Niranjan Reddy, submitted a counter-affidavit in response to a Public Interest Litigation (PIL). The company informed a bench comprising Chief Justice Aparesh Singh and Justice GM Mohiuddin that it had completed disbursing ₹42 lakh to each of the 54 families who lost a member in the tragedy.
The firm stated that this payment was made following an agreement reached with authorities on July 1, 2025, shortly after the incident. Post-dated cheques were issued to all the families, confirming the completion of the company's part of the financial obligation. For injured workers, Sigachi said it provided ₹2 lakh to those with major injuries and ₹1 lakh to those with minor injuries, in addition to bearing all medical expenses.
Investigation Status and Legal Arguments
The state government, represented by Additional Advocate General T Rajinikanth Reddy, provided an update on the probe. He informed the court that the investigation is in its final stages, with a chargesheet expected to be filed within a week. Notably, he stated that the examination of over 300 witnesses and officials from 16 regulatory agencies has not yet found any culpability in the incident.
Senior counsel for Sigachi, S Niranjan Reddy, emphasized that the company had disbursed all statutory amounts. He urged the bench to ensure the investigation remained merit-based, drawing a parallel to the recent Air India crash in Ahmedabad that killed 241 people, where no arrests were made. Reddy also expressed concern that the pending PIL might inadvertently influence the trial court, especially concerning bail petitions for the company's Managing Director, Amit Raj Sinha, who remains in judicial custody, and other absconding accused.
Dispute Over Compensation Figures
The hearing saw objections raised by the petitioner's counsel, Vasudha Nagaraj. She alleged that Sigachi Industries had deviated from its initial promise of providing a full ₹1 crore compensation to each affected family. Nagaraj sought judicial directions for the state government to clarify this apparent discrepancy between the announced amount and the payment made.
The High Court bench, recording all submissions, clarified its role. "We are not controlling the investigation," the bench observed, stressing that its primary goal was to establish facts regarding both the probe and the compensation. It underscored that investigators must independently determine liability. The matter has been adjourned to January 29 for further hearing.
