BRS Blames Telangana CM for Not Delivering on Rs.1 Crore Aid after Sigachi Fire Tragedy
Synopsis
Key Takeaways
Hyderabad, April 17 (NationPress) T. Harish Rao, the deputy floor leader of the Bharat Rashtra Samithi (BRS) in the Telangana Assembly, accused Chief Minister A. Revanth Reddy on Friday of breaking his promise to provide Rs.1 crore compensation to each family of the 54 workers who tragically lost their lives in the fire at Sigachi Industries Limited's facility in Sangareddy district last June.
The former minister emphasized that CM Reddy has not even delivered half of the promised amount.
Harish Rao claimed in a statement that the Chief Minister's tendency to make significant promises only to later disregard them has become a hallmark of his administration.
He recalled that shortly after the disaster, Chief Minister Reddy visited the site and assured that Rs.1 crore would be allocated to each family of the deceased.
“However, a formal response presented in the Assembly revealed that this entire arrangement was merely a superficial gesture, and the justice afforded to the victims is practically nonexistent. This situation serves as undeniable proof that Revanth Reddy has a habit of breaking promises,” Harish Rao stated.
He further alleged that there is collusion between the company management and the government to manipulate the compensation figures, constituting a significant fraud.
“According to the official data submitted by the government in the Assembly, if we divide the total compensation of ₹24.51 crore disbursed so far among the 54 victims, the average amount received by each family is merely ₹45.40 lakh. In essence, from the promised one-crore-rupee compensation, this government has fallen short by approximately ₹54.60 lakh per family — translating to a total outstanding amount of ₹29.48 crore — leaving the victims abandoned,” Harish Rao declared.
“It is truly lamentable that, despite grand claims of providing crores, the State Government has so far distributed a mere ₹1 lakh to each affected family. So, who will fulfill the one-crore-rupee compensation that the Chief Minister and his ministers assured?” Harish Rao questioned.
He noted that Sigachi management admitted in court that they were providing between ₹40 lakh and ₹42 lakh. However, the reality is that they are inflating these figures by combining the ₹25 lakh from their own funds with the statutory entitlements — including PF, ESI, and life insurance payouts — that the workers' families are legally entitled to after their loved ones' demise.
Harish Rao also claimed that they deducted medical expenses incurred by workers who passed away while receiving treatment from this inadequate compensation. Furthermore, this heartless government has made the families of eight workers—who were completely burned in the incident and whose remains could not be identified—run from office to office for months just to secure death certificates.
“This was not merely an accident; it was a mass murder resulting from the management's gross negligence. The investigation has clearly demonstrated — with irrefutable evidence — that safety protocols within the factory were entirely ignored,” the former minister asserted.
He pointed out that the police remained inactive until a case was filed in the High Court on behalf of the victims, leading to serious reprimands from the judiciary. The superficial arrest of the MD, followed by immediate assistance enabling him to secure bail, indicates clear collusion between the government and the company's management, Harish Rao added.
Harish Rao demanded that the government promptly attach the assets of the Sigachi directors under the Revenue Recovery Act provisions. These assets should be liquidated to ensure the immediate distribution of the promised Rs.1 crore compensation to each affected family — without any bureaucratic hurdles or preconditions—as per the Chief Minister's commitment.
On June 30, 2025, a devastating fire erupted following a major explosion at the Sigachi Industries manufacturing plant in the Pashamailaram industrial area of Sangareddy district, resulting in the deaths of 54 workers and injuring 28 others.
The plant produces Microcrystalline Cellulose powder, utilized as a binding agent in tablets and capsules.