SAIL: Join the system of corruption or face the music (Part 1)
Corruption is so deeply ingrained in the fabric of country that the Central Bureau of Investigation (CBI) appears to be heavily overloaded with the cases of corruption. The CBI is registering cases and arresting the culprits involved in the corruption, but it is not enough until the society and citizens come forward and support their action. However, the unethical and immoral acts of the institutions/companies like SAIL act as deterrent for the honest citizens to support the fight against corruption. For some institutions, corruption has become a way of life. Those who join the system not only survive but flourish and those who unearth and report corruption face the music.
SAIL promotes, encourages & nurtures corruption - A whistle blower Rajeev Bhatia, who raised voice against corrupt system, was ‘venomously & vitriolically victimised’ whereas tainted officials lauded, revered & glorified. A calculated move to motivate other officers to emulate their 'Role Models' in the area of FAKE Projects and other nefarious activities.
Officers who were under suspension and are still under CBI/LOKPAL investigations are being given open ‘Integrity Certificate’ on social media whereas the Whistle Blower, has been given premature retirement by mentioning “Doubtful Integrity” in his premature retirement order.
As part of a larger wily agenda, the image of the Whistle Blower has been purposely sullied by mentioning ‘Doubtful Integrity’ in his premature retirement order although he has an impeccable career with no vigilance inquiry/memo/chargesheet in the entire service.
Understanding the FAKE Project Scam of SAIL
SAIL introduced a scheme to offer discounts to infrastructure/construction companies/firms who use steel in their projects. The scheme began honestly where genuine project firms were being extended these discounts based, until some dishonest and corrupt set of officers started offering discounts to the firms which were not constructing any project but sold the cheap steel so purchased in the market for windfall gains. In this regard, please read our article ‘SAIL Project Scam: Genesis and how it spread like cancer in the body of SAIL’.
The journey of FAKE Project Scam of SAIL has four vital milestones. The estimated sales during the four periods and the numbers are placed in four baskets hide the real saga of Promoting, Encouraging & Nurturing Corruption by SAIL management.
Explanation for four baskets:
1. Sales to Fake Projects after the LOKPAL order dated Jan 10, 2024 which made scathing observations in functioning of SAIL and directed SAIL to formulate unambiguous policies. LOKPAL order dumped and sales to FAKE Projects continued.
2. Sales to Fake Projects after the Whistle Blower Rajeev Bhatia sent the complaint on Venkatesh Infra Projects P Ltd [a FAKE Project] and two other firms on Nov 17, 2022 to then Chairman Soma Mondal and D[C] V S Chakravarthy. Complaints buried, Bhatia suspended and sales to FAKE Projects continued.
3. Sales to Fake Projects after the Marketing Serial No 01 of 2021 dated Jan 01, 2021 titled Sales of TMT to small/non-established customers not having project MoU with SAIL.
The above Marketing Serial was issued with the background saying that “Sales of TMT to Projects are covered under provisions for order booking through participation in tenders / negotiation as per Marketing Circular no. MS-18 of 2017. Further, sales to Projects under MOU are covered under MS 18 of 2020 where the minimum quantity for signing MOU is 400 T. Further, SAIL is supplying steel to small/non-established, non-MoU customers having requirement even less than 400 T per year in project segment for which criteria for identifying such projects was not very clear in the existing guidelines.”
The Marketing Serial further says “Branch shall collect relevant information about the project, preferably backed by documents. While seeking information related to the project, Branch Manager/Product executive at the branch shall satisfy themselves on the genuineness of the requirements based on site visits/documents. A declaration shall be sought from such customers as per Annexure. On being satisfied with the genuineness of the requirement, such customers shall be treated as Project customers by the branch and their enquiries shall be processed by the branch accordingly.”
As FAKE Projects are non-established customers, selling steel to them at negotiated prices is a violation of Marketing Serial No 01 of 2021 dated Jan 01, 2021. Guidelines dumped and sales to FAKE Projects continued.
4. Sales to Fake Projects before the issuance of Marketing Serial No 01 of 2021 dated Jan 01, 2021 where Marketing Circular no. MS-18 of 2017 and other circulars have to be followed.
Today we would see the contributions of each officer in damaging the top and bottom line of SAIL through their corrupt acts and decisions and how they rose in the hierarchy ladder.
1. Soma Mondal
The complaint dated Nov 17, 2022 was buried by her and Bhatia was suspended on Nov 24, 2024 for exposing the corruption in SAIL. Subsequently, the same three complaints were sent to PMO vide CPGRAMS complaints no. - PMOPG/D/2022/0275053 dated 03.12.2022, PMOPG/E/2023/0000665 dated 01.01.2023 and PMOPG/E/2023/0010256 dated 11.01.2023. From PMO, on all the three occasions, the complaints came to her but were buried on all three occasions. Subsequently Bhatia sent the same complaints to LOKPAL on 11.02.2023 and the rest is history.
One can understand that Bhatia was suspended to take revenge for exposing the corruption in which officials right up to the highest office of SAIL are involved but to continue sales to FAKE Projects even after having knowledge of the issue is inexplicable. The only reason that comes to an honest mind is that “Personal Greed overpowered SAIL interests” and “Lust for illegal money subdued the fear of law”.
Soma superannuated from SAIL on Apr 30, 2023 and joined as Member, PESB. While selecting Soma as Member PESB on Feb 28, 2023, PMO was fully aware of the complaints against her and by the time his order was finally issued on May 3, 2023, the complaints had reached the door steps of the investigation team also. Moreover, her conduct as Chairman SAIL was also not above board as she not only blatantly violated the Code of Conduct but Vigil Mechanism and Whistle Blower Protection Mechanism also, while dealing with the corruption complaints and the Whistle Blower. Her tenure completes on Apr 30, 2026 and the government declined extension to her.
https://www.bureaugram.com/news/soma-mondal-will-she-get-another-term-as-member-pesb
2.
V S
Chakravarthy
Despite being involved in sales to FAKE Projects and SWR14 blooms as ED (Marketing) & CGM (Flat Products) at exorbitantly low prices, Chakravarthy was selected for the post of Director (Commercial) of SAIL. He was suspended on Jan 19, 2024 along with 28 other officers after the LOKPAL order dated Jan 10, 2024. During his suspension, CMD SAIL Amerandu Prakash had the charge of D[C} and about 93.000 T was sold to FAKE Projects during this period. It has been gathered that Amerandu was in constant touch with Chakravarthy during this period.
Brought back from suspension on Jun 29, 2024, pending LOKPAL/CBI investigation and placed on the chair of D[C}. Till Nov 2024, another about 36,000 T was sold to FAKE Projects. He superannuated on Jun 30, 2025 with retiral benefits withheld.
3. Amarendu Prakash
Amarendu took over as CMD SAIL on May 31, 2023. Soon after his joining he was faced with a test of ethics, morality and honesty, in which he miserably failed. In the last week of July 2023, Ministry of Steel advised him to initiate departmental action against the retiring ED (Sales & ITD) Mahesh Chand Agarwal. Instead, he submitted a 90 page note to the Ministry containing false and arbitrary arguments and helped Agarwal retiring on July 30, 2023 with full fanfare.
https://www.bureaugram.com/news/sail-project-scam-a-syndicate-of-connivances
In the note submitted to the Ministry he noted that steps are being taken to improve the systems but end up selling huge volumes [~ 2,45,000 T including ~ 1,29,000 T after LOKPAL order dated Jan 10, 2024] to FAKE Projects subsequently also. As per marketing sources, his failure to control sales to the FAKE Projects, despite assurance given to the Ministry, is the key reason for his exit from SAIL. Senior management of SAIL bid him farewell by quoting him as a visionary leader with many other hyperboles added.
Agarwal’s contributions to the erosion of the top and bottom line of SAIL, against whom Amarendu refused to act, are given below.
4. Mahesh Chand Agarwal
On Oct 04, 2023, Agarwal went on to join OfBusiness to whom while working in SAIL, over 3,00,000 Tonne of steel products were sold with a hit of about Rs 100 Crores given to SAIL in the form of illegal discounts allowed in the name of project.
https://www.bureaugram.com/news/nexus-between-ofbusiness-and-sail-officials
https://www.bureaugram.com/news/corruption-in-sail-a-never-ending-greed
The story would be incomplete if we do not talk about his samdhi Sanjay Agarwal here. The Marketing vertical headed by Executive Director (Marketing) was created on Dec 15, 2018 in CMO-SAIL, following the recommendation of BCG who was engaged for the turnaround of SAIL by paying a hefty sum of over ₹ 84 Crores.
Apart from other responsibilities, Marketing was made the overall custodian of the selling prices of the various products sold by the sales team. The idea was borrowed from other similar industries with a view that pricing must not be left with the sales team as they have the tendency of unnecessarily reducing the operating prices to achieve the monthly sales targets, thus suppressing the market prices resulting in perpetual reduction in prices. Marketing department was placed to strike the balance between the targets assigned to the sales team and the operating prices.
The entire idea of striking the balance was negated by the SAIL management by posting two “smadhis” on the two posts.
It has been gathered that after a long-standing affair, daughter of Sanjay Agarwal tied the nuptial knot with son of Mahesh Chand Agarwal in the last week of Nov 2022. During the period of above supplies Sanjay was the Executive Director (Marketing) and Mahesh was the Executive Director (Sales & ITD) at CMO SAIL i.e. one was All-India head of Marketing vertical and the other was All-India head of sales vertical.
In the old
Hindi movies, we often see the bride’s father always standing in front of the
groom’s father with hands folded. By posting Sanjay as Executive Director
(Marketing), SAIL management deliberately made the most critical post of CMO
completely redundant, giving full freedom to Mahesh to operate as per his
wishes.
5. Sanjay Agarwal
https://www.bureaugram.com/news/sail-ed-sanjay-agrawal-an-undisciplined-disciplinary-authority
https://www.bureaugram.com/news/sail-ed-sanjay-agrawal-a-dog-lover-and-enemy-of-honest-officers
7.
Suresh Rajamohan
8. Vinod Gupta
Despite being heavily involved in sales to FAKE Projects, Vinod Gupta, Atul Mathur and Suresh Rajamohan were promoted to Executive Directors in May 2021, July 2023 & July 2023 respectively. They were among the 29 officers suspended on Jan 19, 2024 after the LOKPAL order dated Jan 10, 2024. As on date, all three have superannuated with retiral benefits released to none.
While retiring them who
are still under CBI/LOKPAL investigations, SAIL glorified them on social media on
their superannuation, through hyperboles like
‘invaluable contributions’; ‘dedicated, remarkable & exemplary service’;
‘distinguished career’; ‘dedication’; ‘integrity’; ‘immense contribution to
SAIL’; ‘valuable service’ ‘remarkable dedication’, ‘strategic insight’,
‘steadfast leadership’, etc. It
is not only being seen as yet another effort on part of SAIL to imprint a
positive & honest image in minds of the investigating agencies to influence
their investigations/judgement but also to motivate the available workforce to
fill the void by emulating them in their contributions towards the FAKE Project
kitty of SAIL.
Image of the Whistle Blower has been purposely sullied as part of their ongoing harassment and victimization agenda by mentioning ‘Doubtful Integrity’ in his premature retirement order although Whistle Blower has an impeccable career with no vigilance inquiry/memo/chargesheet in the entire service.
Though it is a settled law that in the pre-mature retirement order character assignation of the officer cannot be done otherwise it would be construed as stigma & punishment, but still ‘Doubtful Integrity’ was mentioned so that Whistle Blower cannot take any employment after premature retirement.
On one hand, SAIL snatched the livelihood of the Whistle Blower and on the other hand suspended officers were brought back to lucrative, sensitive and plum posts to amass livelihood for their future generations also.
Soon, in the Part-2, SAIL CMO up to Regional Business Manager level would be covered who are actively involved in sales to the FAKE Projects. Subsequently, the Branch Managers would be covered in the Part-3. Stay tuned to https://www.bureaugram.com
[The above article has been written based on extensive research and inputs from various sources including sources from SAIL. Sales figures are estimated based on inputs from various sources]
