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Fires At Guntur Storages Probed

Insurance companies are now investigating the cases of alleged fire accidents at the 3 storage facilties as they have to dole out huge sums of money to the companies.
Hyderabad | 30th May 2011
With 3 cold storage facilties in Guntur catching fire within a month, farmers, police, government officials and insurance companies found it hard to believe that short-circuits could have had all 3 cold storage facilities erupting in flames.

Suspicions were further strengthened when those probing the case realized that 2 of the 3 affected cold storage facilities - Nandini and Vengamamba - were managed by the same family, and that all the 3 mishaps had conveniently taken place during night-times.

Irate farmers had taken to the streets after the 3rd fire accident was reported on May 15th, and staged dharnas and rasta rokos, stating that they suspected foul play. The distraught chilli farmers asserted that the managers of the storage facilities would have caused the accidents in order to claim their insurance money.

Reports surfaced in a section of the media on May 16th that the fire accident at the Vengamamba cold storage was not an accident after all. The reports also stated that the police were to arrest the owner, Karanam Vengaiah, of the cold storage facility.

Insurance companies are now investigating the cases, as they have to dole out huge sums of money to the cold storages. While Nandini and Sai Surya filed a claim for Rs. 19 crores each, Vengamamba sought Rs. 34 crores as insurance cover.

Southern Power Distribution Company of AP Ltd. (SPDCL) and the Electrical Inspectorate, both of whom separately probed the incidents, concluded that there was no fluctuation in power supply at the time of any of the 3 mishaps.

Investigation into the issue is still on, and the insurance companies are pressed for time as the farmers' compensation packages can be distributed only after the insurance companies cover the losses incurred by the companies due to the fires.
filed in:  Cold Storage Facility, Guntur, Farmers, Crop Insurance, Crime, Fire Accidents
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