Sigachi defies State government, limits compensation to Rs 42 lakh per worker in Pashamylaram blast case

Sigachi Industries told the High Court it would pay only Rs 42 lakh as compensation to each of the 54 workers killed in the Pashamylaram blast, stating the remaining amount should come from the government, contradicting the Chief Minister’s Rs 1 crore ex gratia announcement.

Sangareddy: Sigachi Industries Limited, in its affidavit before the High Court on Tuesday, said it would extend only Rs 42 lakh as compensation to each of the 54 workers who died in the blast at its Pashamylaram industrial unit on June 30, stating that the remaining Rs 58 lakh should be paid by the government.

During the hearing of a public interest litigation, the company submitted that it had already paid between Rs 25 lakh and Rs 30 lakh to the families of each deceased worker. It added that post-dated cheques for the remaining amount were handed over to the Deputy Inspector of Factories. According to the management, the cumulative compensation payable by the company would be Rs 42 lakh per worker, which includes provident fund benefits, insurance proceeds and funeral expenses.

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With this submission, the Sigachi management effectively went against Chief Minister A Revanth Reddy’s announcement of Rs.1 crore ex gratia to each deceased worker, made after his visit to the blast site on June 30. Though the company had earlier stated on several occasions that it was committed to paying Rs one crore as compensation, the affidavit marked a clear reversal of that stand.

The statement by the management left the kin of the deceased workers in shock. The High Court will hear the case again on Wednesday afternoon.