Sheikh's assurance came during the Question Hour in the Legislative Council, after members grilled him, saying he was trying to protect the mill owner. A related question was raised by members Jaiprakash Baviskar and Sharad Vani.

The incident dates back to December 22, 1998, when a small fire was detected on the ground floor of the mill. The fire spread damaged some machinery.

Some of the mill workers noticed the fire and using the available extinguishers, controlled it within 30 minutes. Apart from damage to the machines, no worker was injured.``But the real problem is that the company has claimed over Rs 45 crore insurance, despite loss of only Rs 60 lakh.

It is very suspicious that the fire which broke out in a paper mill was extinguished by the workers themselves, even before the fire brigade arrived,'' Baviskar, a Shiv Sena member pointed out.

The Minister, after inquiring, said the mill was owned by a certain Pradeepkumar Chopda. ``If necessary, an inquiry will be conducted by the CID into the matter. The insurance companies will also be alerted about the false claim of the mill management,'' he said.