3 min readHyderabadJan 30, 2026 10:21 AM IST
First published on: Jan 30, 2026 at 10:21 AM IST
The Telangana High Court on Thursday directed Sigachi Industries Ltd to explain the discrepancies in the compensation disbursed to the kin of the 54 people killed in the June 2025 explosion at their factory unit in the Pashamylaram area of Sangareddy district. The discrepancies were pointed out by the court-appointed amicus curiae Dominic Fernandes, who analysed various documents filed by the company and the state.
A division bench comprising Chief Justice Aparesh Kumar Singh and Justice G M Mohiuddin, while hearing the Public Interest Litigation (PIL) that challenged the slow pace of investigation post the incident and non-disbursal of promised Rs 1 crore as compensation to the kin of the victims, also directed the state government to apprise the court of the discrepancies.
The bench then directed the Telangana State Legal Services Authority (TSLSA) and the District Legal Services Authority, Sangareddy, to see if the kin of the deceased need legal services and submit a report by the next date of hearing. The court also directed to implead the regional commissioner, Employees’ Provident Fund Organisation, Hyderabad; regional director, Employees’ State Insurance, Hyderabad; and controller of drugs, Government of Telangana, as party respondents to the PIL. The newly impleaded respondents were directed to file their counter-affidavits before the next date of hearing scheduled on March 12.
Sigachi backtracked on ex gratia amount: amicus curiae
During the hearing, the court went through the report filed by the amicus curiae to note certain anomalies and incomplete figures, and stated that the ex gratia payment has been made under the Employee’s Compensation Act, 1923, to 11 workmen, and the remaining workmen were paid ex gratia under the Employees’ State Insurance Act, 1948.
The amicus pointed out that Sigachi had first informed through the Bombay Stock Exchange and National Stock Exchange of ex gratia of Rs 1 crore to the families of the deceased but later backtracked stating that ex-gratia constitutes only about Rs 25 lakh and the rest was the statutory compensation to be paid under Employees’ State Insurance, Employees’ Provident Fund and Employees’ Compensation Act etc.
Noting that the company and the state have passed the burden of ex gratia on to each other, he further submitted that families have so far received only about Rs 40-42 lakh, of which only Rs 25 lakh constitutes ex gratia, and the rest were statutory benefits.
The counsel for Sigachi submitted that out of the total agreed amount of Rs 23,17,49,181, an amount of Rs 16,44,47,525 has already been paid, and the balance amount of Rs 6,05,32,720 has been paid by them through post-dated cheques.
Additional Advocate General T Rajinikanth Reddy informed the court that a chargesheet has been filed in the FIR regarding the blast and a final report submitted on the FIR regarding the missing workers.
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