No matter how detailed and exhaustive policies SAIL makes, unless these are backed by transparent, ethical, moral & honest intentions, non-compromised senior management & internal vigilance, corruption & financial irregularities would not stop.

SAIL made its dishonest, immoral & corrupt intentions clear by first suspending and then conducting FAKE disciplinary proceedings against the Whistle Blower; followed by giving unlawful & illegitimate pre-mature retirement to him through a stigmatic order.

There is no dearth of written down existing policies and guidelines in SAIL on Projects but still its officials managed to sell over 11,00,000 Tonne of Steel products to FAKE Projects, UNCHECKED, inflicting a massive blow of Rs 400 CR to SAIL. SAIL’s Marketing Serial No. 01 of 2021 itself claims that there are clear existing guidelines/criteriais in place for identifying projects.

https://www.bureaugram.com/news/sail-project-scam-a-case-of-blatant-compromise

SAIL CMO has issued Order Booking Scheme (Segments) [OBS(S)] for 2026-27 which contain detailed guidelines, effective from Apr 01, 2026, for the customers in the Infrastructure & Construction segment.

Shakespeare said : What is there in the name ? Will the change in names change the intentions of the SAIL officials also ?

It may be noted that it was used to be called as  MOU(Projects) till 2024-25; was renamed MOU(Construction) for 2025-26 and now it has been rechristened as OBS(Segments) for 2026-27. Whether the names prove to be  ‘Old wine in a new bottle’ or things would actually change on the ground. Will the change in names change the intentions of the SAIL officials also ?

Till 2025-26, the document signed between SAIL and the Projects/Infrastructure & Construction firms was called Memorandum of Understanding (MoU) but from 2026-27, the word MoU has also been done away with. Now onwards, the document signed between SAIL and the firms belonging to the Infrastructure & Construction segment would be called “DEMAND REGISTRATION UNDER ORDER BOOKING SCHEME (SEGMENTS)”

Incidentally, the usage of word “segments” in the new order booking policy is a welcome step. It is an acknowledgement on part of  SAIL that segment/end-use do find a place in their decision-making process. It may be noted that word segment is interchanging used for end-use in the steel industry.  For example: The end-use of HR Coils sold to the customers belonging to the Tube/Pipe making segment are pipes & tubes. Similarly, the end-use of TMT bars sold to customers belonging to the Infrastructure & Construction segment is Reinforced Steel Concrete Construction.

Under OBS(Segments) for Customers in Infrastructure & Construction segment, the following has been included in the policy:

1.     UNDERTAKING from Customers in Infrastructure & Construction segment

We undertake that the same are for our self-consumption/ consumption at the construction sites (list attached), and not for resale. We also undertake that the documents submitted by us are authentic.

We hereby declare that in case of diversion of materials for use other than the intended purpose, or documents submitted by us are found to be not genuine, SAIL may take suitable action including discontinuation of supplies on firm prices, discontinuation of OBS(S), non-payment of accrued OBS(S) benefits,and issuance of demand notice for recoverable amount, if any, under this scheme.

We also undertake to submit a Declaration of Utilization of materials (format has been given in the policy) after successful completion of OBS(S) quantity, in order to receive accrued OBS benefits, subject to fulfilment of all other terms & conditions of the OBS.

We also undertake that no accrued OBS benefits shall be payable on unutilized quantity or on the material that has been lifted for purpose other than that declared by us. We declare that if any deviation is found in use of material by us for purpose other than intended/ declared purpose, or for diversion of any material for pecuniary benefits on our part, demand notice for recovery of OBS benefits extended for total offtake of material can be raised by SAIL along with any other action, including penal and/or legal action, as deemed fitand appropriate by SAIL, and in the event of such instances, we agree to pay back any recoverable amount to SAIL.

2.     Action prescribed for the SAIL officials:

A visit to the construction site is to be undertaken by any Branch/Region executive/KAM within 3 months of entering into OBS. A site visit report regarding the same would be submitted to the Region/ concerned Product Manager at HQ.

Editor’s Take:

A.   Why no punitive action proposed for SAIL officials?

We have noted a very interesting point in the Order Booking Scheme (Segments) for 2026-27. In case of diversion of material by the firms belonging to Infrastructure & Construction segment provisions of recovery of OBS benefit salong with any other action, including penal and/or legal action, as deemed fit and appropriate by SAIL has been included in the policy. On the other hand, similar action has not been proposed in the policy in case SAIL officials are found involved hands in glove with these firms.

We are witness to all the actions of SAIL management since Nov 17, 2022, when  the Whistle Blower Rajeev Bhatia lodged the first complaint on a FAKE Project – Venkatesh Infra Projects P Ltd.  In our numerous articles/stories posted on https://www.bureaugram.com, we have placed before shown you how SAIL officials have compromised to sell over 11,00,000 Tonne of Steel products to FAKE Project inflicting an estimated loss of Rs 400 CR to SAIL.

Though there are numerous stories but you must read  - SAIL PROJECT SCAM: A case of ‘Blatant Compromise’at

https://www.bureaugram.com/news/sail-project-scam-a-case-of-blatant-compromise

Though SAIL has lost Rs 400 CR due to the indiscreet, illegal, and anti-SAIL actions of its officials but till date we have not seen any punitive action from SAIL against its delinquent officers.  Rather, the management has always been busy in rewarding the erring/alleged officers and taking revenge on the Whistle Blower.

In the new policy also, the management of SAIL has tried to repeat the same. All the responsibility  and punitive actions have been proposed for the firms belonging to the Infrastructure & Construction segmentand have labelled its own officers as epitome of transparency, probity, and honesty.

It has been gathered that two senior officials of Northern Region of SAIL CMO visited Venkatesh Infra Projects P Ltd location(s) and submitted a report which also formed the basis of entering in to Project MoU with the firm. Against them no action has been taken till date.

B.   Who will ensure that the deviations found in use of material would not be buried? How would the action be taken if the CMD SAIL had said "कुछ तो लोग कहेंगे"  for the reported deviations/diversions?

Although recovery of OBS benefit salong with any other action, including penal and/or legal action, as deemed fit and appropriate by SAIL has been included in the policy but who would ensure that deviations/diversions reported would not be buried when exhaustive written complaints from the Whistle Blower and written directions from LOKPAL can be buried?

We are all aware that the complaint on a FAKE Project – Venkatesh Infra Projects P Ltd who was openly selling the steel in the open market was buried by none less than the Chairman and D[C] of SAIL. The burial was not limited to one occasion, 5 times they received the complaints and buried on all the five occasions.

The complaints were not only buried but the Whistle Blower was also suspended to keep the sales to FAKE Projects continued. SAIL officials sold about 4,30,000 T of steel products during the period Whistle Blower was kept under suspension on FAKE charges.

Read - Suspension of the Whistle Blower: A weapon to accelerate & intensify corruption at

https://www.bureaugram.com/news/suspension-of-the-whistle-blower-a-weapon-to-accelerate-intensify-corruption

It has been gathered that before the Whistle Blower, there were many internal voices raising the issue of selling of TMT Bars in the market by Venkatesh Infra Projects P Ltd in the meetings but no heed was given by SAIL officials. In addition, SAIL distributors also raised the same issue on many occasions.

C.    When highest corruption watchdog has no value in the eyes of SAIL, what status any Whistle Blower or other complainant has?

Although, LOKPAL, the highest corruption watchdog, in its order dated  Jan 10, 2024 passed scathing remarks on the functioning of SAIL and directed SAIL to formulate a clear and unambiguous policy with regard to MOU, pricing and relaxation but SAIL still sold over 75,000 Tonne to FAKE Projects after the above directions.

(The above article has been written based on extensive research and inputs from various sources including sources from SAIL)