Lokpal findings flag irregularities in SAILs commercial dealings, directs CBI probe

The steel ministry suspended V.S. Chakravarthy, Director (Commercial) and A.K. Tulsiani, Director (Finance) with immediate effect

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26 Aug, 2025 12:21

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National anti-corruption ombudsman Lokpal pointed out discrepancies in two commercial deals conducted by the Steel Authority of India, according to an order from earlier this month. The findings led to the suspension of two directors and 26 board-level officials in the public sector undertaking.

SAIL's dealings with Venkatesh Infra Projects and Avon Steel Industries are under the scanner. The investigation for both cases has been handed over the to Central Bureau of Investigation (CBI) according to the order. The probe will be completed within six months.

On January 20, the steel ministry suspended  VS Chakravarthy, Director (Commercial) and AK Tulsiani, Director (Finance) with immediate effect. Commenting on the matter, Chairman, SAIL, Shri Amarendu Prakash said, “Company’s business is being carried out as usual and it is not going to impact the performance of the company. "

Allegations on MoU with M/S Venkatesh

The complainant has alleged that SAIL entered into an agreement to supply 1,40,000 metric tonnes of steel to M/S Venkatesh on October 20, 2020, merely eight days after the company was formed. "It is alleged that it is astonishing how a company incorporated in October 2020 and thus having no work experience, managed to obtain such large projects where it was able to consume such large volumes of steel," the order stated.

The complainant went on further to allege that SAIL's executive director (sales and ITD) offered low prices to M/S Venkatesh, citing it as a "special favor".

Referring to this case, the Lokpal said in its order, “There was lack of due diligence on part of the concerned officer of SAIL in providing material at lower costs to M/S Venkatesh vis-a-vis other similar customers that resulted in loss of opportunity for maximizing profit to sale."

It further stated, "It is not only a question of how much monetary loss has actually occurred, but also relevant is the intention to manipulate the system in order to cause loss to SAIL and gain the entity concerned. The system can be manipulated and played by experienced players in the steel market, with the connivance of the officer of the concerned officer of SAIL, whomsoever they may be."

SAIL's dealings with Avon Steel 

The complaint has levelled allegations against SAIL chairman and executive director (sales and ITD) for misusing their position causing a loss to the state-owned steel maker.  According to the complaint, SAIL sold semis, a steel product, to Ludhiana-based Avon Steel Industries Private Ltd  at prices that allowed the private firm to make "windfall profits at the expense of SAIL."

“In this case as well, the ministry has stated that a deeper probe is warranted by an external specialized agency to ascertain the precise role played by various stakeholders with reference to a leaky pricing slash marketing policy. The nexus amongst the officials concerned and the alleged beneficiary form has not been ruled out,” Lokpal said in its order.