The factory owner had a licence to run a plastic factory but was instead running a firecracker storage unit, news reports earlier quoted the police as saying
A Delhi court on Wednesday has taken the owner of the firecracker unit in outer Delhi's Bawana industrial area, to five-day police custody.
Metropolitan Magistrate Jitendra Pratap Singh allowed the police custody of accused Manoj Jain, 49, who was arrested on 21 January in connection with the fire tragedy which took place on 20 January.
A probe revealed it was a factory of "cold firecrackers" used in stage shows and Holi celebrations, the police had said.
Earlier, the massive fire that broke out in Delhi's Bawana industrial area on Saturday evening caused the deaths of 17 people, including 10 women.
Police said an FIR had been registered under Indian Penal Code sections relating to culpable homicide not amounting to murder, and negligent conduct with respect to fire or combustible material.
The factory owner had a licence to run a plastic factory but was instead running a firecracker storage unit, news reports earlier quoted the police as saying.
The rural development minister of Delhi government, Gopal Rai, on Sunday announced a compensation of Rs 5 Lakh to next of kin of the victims and Rs 1 lakh to the injured in the Bawana fire incident.