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Ex-CMD, SAIL joins Vedanta Group: Will it lead to conflict of interest?
If sources are believed, Amarendu Prakash, whose curtailed tenure as CMD Steel Authority of India Limited, was full of numerous controversies of unethical and dishonest behaviour has joined Vedanta Group as CEO of its Zinc Business based in Udaipur Rajasthan. He was relieved from SAIL on April 1, 2026.
The controversies surrounding him as CMD SAIL include spending Rs 70 Lakhs from SAIL’s exchequer to defend the corrupt officials, giving premature retirement to the Whistle Blower Rajeev Bhatia who exposed corruption of over Rs 800 CR in SAIL and Amarendu’s role in the corruption exposed by the Whistle Blower. It has been gathered that the complaints which are under investigation with LOKPAL of India and CBI include him role and involvement also.
Vedanta Group operates in the field of Metals and mining which are common to SAIL. The Bokaro based ESL Steel Limited (earlier known as Electrosteel Steels Limited) which operates a 1.5 MT per annum greenfield, integrated steel plant is also part of Vedanta Group. It produces pig iron, billets, TMT bars, wire rods and ductile iron pipes. Except for DI pipes, SAIL also produces all other products in its plants.
Further SAIL operates has two galvanising lines at its Bokaro Steel Plant where zinc is coated on the cold rolled coils. Group’s website claims that Vedanta holds a 64.9% stake in Hindustan Zinc Limited (HZL) and its integrated zinc operations hold 75% market share in India’s primary zinc market.
It is noteworthy that Amarendu Prakash spent most of his career in SAIL at Bokaro steel plant and before taking over as CMD, SAIL, he was Director-in Charge of the same plant.
It has been further gathered that it is India's only integrated producer of zinc and SAIL is bound to have commercial transactions with the firm unless SAIL decides to permanently shut down its galvanising lines at Bokaro.
The controversies surrounding him as CMD SAIL include spending Rs 70 Lakhs from SAIL’s exchequer to defend the corrupt officials, giving premature retirement to the Whistle Blower Rajeev Bhatia who exposed corruption of over Rs 800 CR in SAIL and Amarendu’s role in the corruption exposed by the Whistle Blower. It has been gathered that the complaints which are under investigation with LOKPAL of India and CBI include him role and involvement also.
Vedanta Group operates in the field of Metals and mining which are common to SAIL. The Bokaro based ESL Steel Limited (earlier known as Electrosteel Steels Limited) which operates a 1.5 MT per annum greenfield, integrated steel plant is also part of Vedanta Group. It produces pig iron, billets, TMT bars, wire rods and ductile iron pipes. Except for DI pipes, SAIL also produces all other products in its plants.
Further SAIL operates has two galvanising lines at its Bokaro Steel Plant where zinc is coated on the cold rolled coils. Group’s website claims that Vedanta holds a 64.9% stake in Hindustan Zinc Limited (HZL) and its integrated zinc operations hold 75% market share in India’s primary zinc market.
It is noteworthy that Amarendu Prakash spent most of his career in SAIL at Bokaro steel plant and before taking over as CMD, SAIL, he was Director-in Charge of the same plant.
It has been further gathered that it is India's only integrated producer of zinc and SAIL is bound to have commercial transactions with the firm unless SAIL decides to permanently shut down its galvanising lines at Bokaro.
History repeating itself
It can be seen that history is repeating
itself. Earlier P K Singh ex-Chairman SAIL had also joined Vedanta
group for some time. Amarendu Prakash is supposed to be very close to P K
Singh and used to be his staff officer when Singh was Chairman SAIL.
It is noteworthy that as per Government Guidelines as per DPE OM No. 2(22)/99-GM-GL-91 dated 15th May, 2008, there is one year moratorium applicable for the Board Members of CPSEs to join private commercial undertakings after retirement or resignation. Prior approval of the Government is required to do so.
https://www.dpe.gov.in/static/uploads/2025/07/835dcfbad55747f38e852c97b2b37b19.pdf
Requests received in this regard are examined by the administrative Ministry/Department on case-to-case basis depending upon the merit of the case after obtaining “no objection‟ from the concerned CPSE and grant permission for post-retirement employment with the approval of their Minister-in-charge
The administrative Ministry/Department may grant permission keeping in view the following aspects:
1. The official concerned has had no official dealings with the prospective employers in the preceding five years.
2. Whether the ex-functional Directors or ex-chief executives has been privy to sensitive or strategic information in the last years of his service which is directly related to the areas of interest or work of the organization which he proposes to join or the areas in which he proposes to practice/consult.
3. Whether there is conflict of interest between the policies of the office (s) he has held in the last 5 years and the interest represented or work undertaken by the organization he proposes to join. Such conflict of interest, however, should not be interpreted narrowly to mean normal economic competition with Government or its Enterprises.
4. Whether the service record of the ex-functional Director or ex-chief executive is clear, particularly with respect to integrity and dealings with Government as well as with CPSEs/non-Government organizations.
5. Applicant’s commercial duties will not involve liaison or contact with the Government Departments/PSEs,
6. The employer of the applicant should not get an unfair advantage due to previous official positions/experience/knowledge of the incumbent a
7. The present emoluments and pecuniary benefits should not be far in excess of those currently prevalent in the industry. The words “far in excess” should not be narrowly interpreted to cover increases in such benefits that may be result of buoyancy in the industry or in the economy as a whole.
Vide OM No. 2(22)/99-GM Jan 07, 2013, Ministry of Heavy Industries and Public Enterprises, Department of Public Enterprises had further clarified as under:
"The administrative Ministry/Department shall normally take a final decision on the application for granting permission to accept any appointment/post after retirement and communicate the same to the applicant within a period of 30 days from the date of receipt of the application complete in all respects. In case no decision is communicated within 60 days, the applicant may take up the assignment presuming that the permission has been granted".
https://dtf.in/wp-content/files/O.M._dated_%20%20%20%20%20%20%20%20January%207,2013_-_Restrictions_on_top_level_executives_of_CPSEs_joining_private_commercial_undertakings_after_retirement.pdf
The administrative Ministry/Department may grant permission keeping in view the following aspects:
1. The official concerned has had no official dealings with the prospective employers in the preceding five years.
2. Whether the ex-functional Directors or ex-chief executives has been privy to sensitive or strategic information in the last years of his service which is directly related to the areas of interest or work of the organization which he proposes to join or the areas in which he proposes to practice/consult.
3. Whether there is conflict of interest between the policies of the office (s) he has held in the last 5 years and the interest represented or work undertaken by the organization he proposes to join. Such conflict of interest, however, should not be interpreted narrowly to mean normal economic competition with Government or its Enterprises.
4. Whether the service record of the ex-functional Director or ex-chief executive is clear, particularly with respect to integrity and dealings with Government as well as with CPSEs/non-Government organizations.
5. Applicant’s commercial duties will not involve liaison or contact with the Government Departments/PSEs,
6. The employer of the applicant should not get an unfair advantage due to previous official positions/experience/knowledge of the incumbent a
7. The present emoluments and pecuniary benefits should not be far in excess of those currently prevalent in the industry. The words “far in excess” should not be narrowly interpreted to cover increases in such benefits that may be result of buoyancy in the industry or in the economy as a whole.
Vide OM No. 2(22)/99-GM Jan 07, 2013, Ministry of Heavy Industries and Public Enterprises, Department of Public Enterprises had further clarified as under:
"The administrative Ministry/Department shall normally take a final decision on the application for granting permission to accept any appointment/post after retirement and communicate the same to the applicant within a period of 30 days from the date of receipt of the application complete in all respects. In case no decision is communicated within 60 days, the applicant may take up the assignment presuming that the permission has been granted".
https://dtf.in/wp-content/files/O.M._dated_%20%20%20%20%20%20%20%20January%207,2013_-_Restrictions_on_top_level_executives_of_CPSEs_joining_private_commercial_undertakings_after_retirement.pdf
It is not clear yet that the Ministry of Steel has granted the permission to Amarendu or he is joining the Vedanta Group without approval as 60 days have passed.
