In a significant development before the Telangana High Court, Sigachi Industries has confirmed that it has disbursed a compensation of ₹42 lakh to the family of each of the 54 workers who lost their lives in the catastrophic explosion at its Hyderabad facility in June 2025. The company clarified that this amount was its share of the total compensation, with the remaining portion of the previously announced ₹1 crore package to be borne by the government.
Court Hearing Reveals Compensation Details
During a hearing on Wednesday, the company's stance was presented before a bench comprising Chief Justice Aparesh Singh and Justice GM Mohiuddin. Sigachi Industries, in its counter-affidavit filed in response to a Public Interest Litigation (PIL), stated that the compensation agreement was reached with authorities on July 1, 2025, shortly after the tragic incident.
Represented by senior counsel S Niranjan Reddy, the company asserted that the compensation process was complete, with post-dated cheques already issued to the families of the deceased. Furthermore, the firm detailed that workers who sustained major injuries received ₹2 lakh each, while those with minor injuries were given ₹1 lakh each. All medical expenses for the injured were covered by the company.
State of Investigation and Legal Arguments
The counsel for Sigachi argued that the company had disbursed all statutory amounts and urged the court to ensure the investigation remained strictly merit-based. Drawing a parallel to the Air India crash in Ahmedabad that claimed 241 lives, where no immediate arrests were made, Reddy highlighted that Sigachi was cooperating fully with the probe. He noted that even the company's Managing Director, Amit Raj Sinha, was currently in judicial remand.
Reddy also expressed apprehension that the ongoing PIL might inadvertently exert pressure on the trial court, particularly concerning bail petitions for the arrested MD and other accused who are absconding.
Representing the state government, Additional Advocate General T Rajinikanth Reddy informed the court that the investigation, now in its final stages, had not yet found any specific culpability. He stated that the examination of over 300 witnesses and officials from 16 regulatory agencies had not disclosed any fault, and a chargesheet was expected to be filed within a week.
Court's Observations and Future Proceedings
The petitioner's counsel, Vasudha Nagaraj, contested the compensation figures, alleging that Sigachi had deviated from its initial promise of ₹1 crore per family. She sought judicial intervention to direct the state to clarify this discrepancy.
Recording all submissions, the High Court bench made it clear that its primary role was to establish the facts regarding the investigation and compensation. "We are not controlling the investigation," the bench observed, stressing that investigators must independently determine liability.
The court further clarified that jurisdictional magistrates should decide on matters like bail petitions based purely on facts, without feeling any pressure from the pending PIL. The matter has been adjourned and is scheduled for the next hearing on January 29.
