The owner, Sumathy, had been in the cracker manufacturing business for the past 15 years, and about 50 persons were working in her unit.
District Collector L Subramanian had already ordered the cancellation of the unit's licence.
On July 7, 2009, 16 persons were killed in a blast in a cracker unit in the same area.
The cracker unit, where the explosion occurred, had proper licence from the District Revenue officer and the Petroleum and Explosives Safety Organisation.PESO officials would also conduct an inquiry, sources said.