Opposition Congress in Karnataka on Saturday demanded a probe by a sitting High Court Judge into the explosion at a stone quarry near Shivamogga.
It also demanded that all illegal quarrying or mining in the state be stopped immediately.
"The family of those killed should be given compensation judiciously. Not just announcing Rs 5 lakh, they should also be given a job," Congress leader Siddaramaiah said.
Speaking to reporters, he said the blast would have to be inquired into by a sitting judge of the High Court of Karnataka.
"All illegal quarrying or mining in the state have to be stopped immediately," he added.
The Chief Minister had, on Friday, announced Rs 5 lakh to the families of the victims and ordered a high-level probe into the incident.
At least five people were killed in the explosion at a stone quarry on the outskirts of Shivamogga city on Thursday night.
Gelatin sticks are said to have led to the blast.
"According to my information, the explosive materials were brought in from Andhra Pradesh without any permission which is an offence and not storing them safely is a second offence," Mr Siddaramaiah said, adding: "There is also no accountability or responsibility on the part of officials.
"Senior BJP leader and MLC Ayanur Manjunath himself has said a lot of illegal mining and quarrying activities have been going on in Shivamogga, the home district of Chief Minister Yediyurappa," he said.
This shows total failure of the administration, he said.
"Yediyurappa and district (Shivamogga) in-charge Minister K S Eshwarappa should own up," he said.
Earlier, Mr Yediyurappa said illegal quarrying or mining would not be allowed in the state and necessary action would be taken against such activities.