The incident took place last night when a 10-feet under-construction wall collapsed, killing five labourers on the spot, they said.
The injured were rushed to the hospital, where condition of three was critical.
A compensation of Rs 2 lakh each will be given to the next of the kin of deceased labourers, said District Magistrate Jagat Raj Tripathi.
He said Rs 50,000 each will be given to the injured.
The sugar mill has also announced to grant a sum of Rs 5 lakh each to the dependents of those killed.
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