The NHRC direction came in accordance to the recommendations made by a judicial commission of enquiry headed by retired High Court judge Justice A S Naidu.
The commission had suggested in its report that an amount of Rs 1.5 lakh each be paid as damage to the families of 40 deceased although, 41 people had died in the tragedy.
Although, the state government accepted the report of the Judicial Commission, it decided not to pay compensation to the families of the victims as suggested by the Commission.
A human rights activist from Varanasi, however, approached the NHRC seeking a direction to Odisha government to pay the compensation.
Adjudicating on the petition, the NHRC had issued a notice to the state government, which in return refused to pay the damage stating that the decision was taken by the state cabinet in consonance with previous practice.
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