Six bodies, charred beyond recognition, were found inside a room, while another was lying in the premises of the unit last night, said DIG (Southern Range), R K Sharma.
"We suspect that the assailants used diesel or petrol to set the room on fire with the victims trapped inside," he said.
Although fire tenders from neighbouring Aska and Hinjili rushed to the spot, none of the victims could be saved.
There have been frequent altercations between locals and the crusher unit owners over the last two months after the former objected to blasting in the area, said Sharma. A few employees of the unit seem to have huddled in the room to escape a mob that attacked them yesterday, he said.
The victims are believed to be owners, partners and employees of the crusher unit, Sharma said, adding that the identities of the dead and the assailants could be ascertained only after a thorough investigation.
The DIG said that around 200 policemen had been deployed in the area.