Karaikal Chlorates is producing 60 tonnes of potassium chlorate per day as against its permitted quantity of 16 tonnes.'

Puducherry agriculture and revenue officials have seized 2,000 tonnes of potash from the factories of these two companies after conducting a raid recently, she added.

These factories were sealed by officials and a first information report has also been filed.

However, Vaigai Chemicals denied the allegations, attributing them to business rivalry.

'Our production capacity is nine tonnes per day and we do not exceed the same. We also buy potassium chlorate from registered dealers after due declaration to the appropriate authorities,' M.S. Saravanan, vice-president of Vaigai Chemicals told IANS.

He said one of its business rivals was raising false allegations against the firm and the authorities raided the factory because of such charges.

'The raw materials seized from our factory have to be tested and the result given within a week. The factory can be sealed only after giving due notice. The government has not given us any test results till date,' Saravanan pointed out.