Narela Factory Fire: NGT Orders Reconsideration of Compensation for Victims

The National Green Tribunal (NGT) has directed authorities to reconsider and enhance the compensation paid to victims of the Narela Industrial Area fire in North Delhi, which resulted in three deaths and left six individuals injured.

The Tribunal observed that in previous cases involving industrial accidents, it had ordered higher compensation and expected similar treatment in this matter.

The case originated suo motu from a news report published in The Times of India on July 9, 2024, which highlighted the tragic incident of a fire breaking out at a moong dal processing factory operated by M/s Shyam Kripa Foods Pvt. Ltd. in the Narela Industrial Area.

The fire, which occurred on June 8, 2024, was followed by an explosion powerful enough to blow off portions of the roof and balcony.

The report noted that nearly 90 firefighters were deployed to bring the blaze under control and a dozen gas cylinders were recovered from the premises, preventing a much larger tragedy.

The presence of gas pipes installed throughout the factory raised serious safety concerns.

Three workers lost their lives in the incident. The deceased were identified as Shyam, aged 24; Ram Singh, aged 30; and Beerpal, aged 42, all of whom were declared brought dead with burn injuries. Six others sustained injuries of varying severity. They included Pushpendra Sharma (26), Akash (19), Mohit Kumar (21), Ravi Kumar (19), Monu (25), and Lalu (32). All injured victims were referred to Safdarjung Hospital for treatment. 

Following the tragedy, the Tribunal issued notices to the Central Pollution Control Board (CPCB), Delhi Pollution Control Committee (DPCC), Ministry of Environment, Forest and Climate Change (MoEF&CC), and the office of the Sub-Divisional Magistrate, Narela.

Replies filed by the regulatory authorities indicated that the factory was located in an approved industrial area and held valid consents under the Water (Prevention and Control of Pollution) Act, 1974 and Air (Prevention and Control of Pollution) Act, 1981. The unit was categorized as a ‘green category’ industry under CPCB norms.

In terms of relief measures, the SDM’s office informed the Tribunal that compensation was being processed as per Government Order dated March 5, 2020, which prescribes Rs. 10 lakh to the family of each deceased victim and Rs. 20,000 to those with minor injuries in cases of disasters, including industrial accidents.

Based on these norms, the total ex-gratia compensation was calculated at Rs. 40.6 lakh, comprising Rs. 40 lakh for four deceased victims (including one who died later) and Rs. 60,000 for three injured persons.

Additionally, M/s Shyam Kripa Foods Pvt. Ltd. stated that it had released Rs. 33.8 lakh towards treatment and compensation of victims.

This included Rs. 6 lakh each to the legal heirs of the deceased and varying amounts to the injured workers.

The company also undertook to pay an additional Rs. 2 lakh per deceased family during proceedings for quashing of the FIR, thereby bringing the total to Rs. 8 lakh for each deceased victim.

However, the Tribunal noted that in similar matters, such as the case relating to a blast in a firecracker unit in Maharashtra’s Palghar in 2021, compensation of Rs. 20 lakh had been awarded to families of deceased victims and up to Rs. 15 lakh to injured persons depending on the severity of injuries.

The Tribunal expressed its expectation that the district authorities would take a sympathetic view and ensure compliance with its earlier standards to provide just compensation to victims and their families.

Disposing of the original application and all pending interlocutory applications, the Tribunal reiterated its direction for appropriate reconsideration of compensation in light of its previous rulings in similar incidents.

Case Title: In re: News item titled “3 sleeping after finishing shift killed in blaze at Narela factory 6 injured” appearing in The Times of India dated 09.07.2024

Date of Order: August 4, 2025

Bench: Justice Prakash Shrivastava (Chairperson), Dr. A. Senthil Vel (Expert Member), Dr. Afroz Ahmad (Expert Member)