The Telangana High Court has taken a firm stance on the lingering issues surrounding the tragic Sigachi factory explosion, demanding clear explanations from the company regarding compensation payments to the families of the 54 victims who lost their lives in June 2025. The court has also mandated legal assistance for the bereaved families and expanded the scope of the ongoing Public Interest Litigation (PIL) by including key regulatory bodies as respondents.
Court Scrutinizes Compensation Discrepancies
During a hearing on Thursday, a division bench comprising Chief Justice Aparesh Kumar Singh and Justice G M Mohiuddin directed Sigachi Industries Ltd to clarify the inconsistencies in the compensation disbursed to the kin of the deceased. These discrepancies were highlighted by the court-appointed amicus curiae, Dominic Fernandes, who meticulously analyzed documents submitted by both the company and the state government.
The PIL, which challenges the sluggish investigation progress and the non-disbursal of the promised Rs 1 crore compensation per victim, has brought to light significant anomalies. The bench has further instructed the Telangana government to provide a detailed account of these discrepancies, emphasizing the need for transparency and accountability in addressing the victims' grievances.
Legal Aid and Expanded Litigation
In a move to ensure justice for the affected families, the court has ordered the Telangana State Legal Services Authority (TSLSA) and the District Legal Services Authority in Sangareddy to assess whether the kin of the deceased require legal services. A report on this assessment must be submitted by the next hearing date, scheduled for March 12.
Additionally, the bench has impleaded several key authorities as party respondents to the PIL. These include the regional commissioner of the Employees’ Provident Fund Organisation in Hyderabad, the regional director of the Employees’ State Insurance in Hyderabad, and the controller of drugs for the Government of Telangana. These newly added respondents have been directed to file their counter-affidavits before the upcoming hearing.
Amicus Curiae Exposes Compensation Backtracking
The amicus curiae's report revealed troubling details about the compensation process. Initially, Sigachi Industries had announced through stock exchanges that ex gratia payments of Rs 1 crore would be provided to each victim's family. However, the company later retracted this statement, clarifying that only about Rs 25 lakh constituted ex gratia, with the remainder being statutory compensation under various acts such as the Employees’ State Insurance Act, 1948, and the Employee’s Compensation Act, 1923.
Fernandes pointed out that families have so far received only approximately Rs 40-42 lakh per victim, of which merely Rs 25 lakh is ex gratia. The rest comprises statutory benefits, leading to confusion and distress among the beneficiaries. He also noted that both the company and the state government have been shifting the burden of ex gratia payments onto each other, further complicating the resolution process.
Company and State Responses
During the proceedings, Sigachi's counsel informed the court that out of the total agreed compensation amount of Rs 23,17,49,181, an amount of Rs 16,44,47,525 has already been disbursed. The remaining balance of Rs 6,05,32,720 has been paid via post-dated cheques, indicating some progress in fulfilling financial obligations.
On the investigative front, Additional Advocate General T Rajinikanth Reddy updated the court that a chargesheet has been filed in the FIR related to the blast. Additionally, a final report has been submitted concerning the FIR on missing workers, suggesting steps toward legal accountability for the incident.
The Telangana High Court's intervention underscores the critical need for clarity and fairness in compensating the victims of the Sigachi factory blast. As the legal proceedings advance, the focus remains on ensuring that the families receive the support and justice they deserve, while holding all responsible parties accountable for their roles in this devastating event.
