In the SAIL PROJECT SCAM series, today we are breaking a case of Nexus Nightmare and Convoluted Connivance.

On February 13, 2019, a GSTIN - 07BXXPG0935M1ZV was taken by “Sonia Goel” for her Proprietorship firm named SHUBHAM BUILDERS whose Principal Place of Business was GROUND FLOOR, SHOP B-70 AND B-71, BLOCK B, SEWAK PARK UTTAM NAGAR, NEW DELHI – 110059. Effective from May 24, 2024, the above GSTIN wascancelled on her application.

On the same day i.e. February 13, 2019, the business activities with the firm were initiated by the Faridabad Branch of CMO-SAIL as “Projects” under the Branch Manager Sanchit Soni. The journey which started with Faridabad Branch in Feb 2019 culminated at Trichy Branch in March 2024 with two stoppages in between at Ghaziabad and Baroda.

Why March 2024? Because in Januaryof 2024, 29 officials of SAIL were suspended following the order of LOKPAL in the matter of Venkatesh Infra Projects P Ltd, which was also a case of Trader turned into Project and steel sold on heavy discounts.

Shifting of business transactions from one branch to the other was largely governed by the shifting of officers of CMO-SAIL due to transfers.

In between during March 2021, a new firm appeared on the PROJECT SCAM CANVAS of SAILat its Ghaziabad Branch, whose name was SHIKHA CONSTRUCTION. The family behind both the firms was the same Goel Family who were already in trading business and connected to SAIL through their various firms like NOHAR CHAND & SONS STEELS P LTD; NOHAR CHAND LOHA BHANDAR, INTERNATIONAL LOHA BHANDARP LTD etc.

During that time astheir business/client forte was Plates and not TMT Bars, they were keener to get Plates from SAIL on heavy discounts under Project Scheme rather than TMT Bars. Their wish was fulfilled by V Suresh, who was then the Regional Manager of Northern Region at that time and the firstPROJECT MOU was signed with SHIKHA CONSTRUCTIONw.e.f. April 2021.

The supply of Plates at Negotiated Prices under Projects scheme started from Ghaziabad Branch, the same branch from where the family use to lift Plates as a Trader at Normal Prices in their firm: NOHAR CHAND & SONS STEELS P LTD. It has been gathered that heavy discounts were given on plates to the firm in the name of Projects.

It may be noted here that Project MOU with Venkatesh Infra Projects P Ltdwas signed in Oct 2020 and with SHIKHA CONSTRUCTION around Mar 2021. Both the MOU were initiated by Ghaziabad Branch and approved/forwarded by the same Northern Region of CMO-SAIL. Therefore, the set of officers involved in both the cases were largely the same.

Based on the timelines of sales to the above two firms, internal sources of SAIL say that the following sales officials could be involved in the approval process:

Over 10,000 Tonne of Steel was supplied by SAIL officials to SHIKHA CONSTRUCTION from Ghaziabad and Trichy at heavy discounts. One finds that Trichy branch of CMO-SAIL appears in the financial transactions of both the firms. Around Aug/Sep 2021, an officer name Bhupender Singh was transferred from Ghaziabad Branch to Trichy Branch as Branch Manager. This could probably be the reason, otherwise why the firms belonging to NCR will go all the way to Trichy to buy steel that too on Direct Dispatch by Road, when such orders can be book from any branch. Simple consideration was that where and who can give the maximum discount.

The modus-operandi adopted by SAIL officials is the same as was adopted by in the supply of 1,50,000 Tonne of steel to M/s Venkatesh Infra Projects P Ltd. On the directions dated January 10, 2024 of Lokpal of India, CBI has already registered F.I.R. No. RC2182024A0021 on 10.10.2024 u/s 120B, 420, 468, 471 IPC and Sections 7, 9 and 12 of the P.C. Act, 1988 as amended against the erring senior officials of SAIL, M/s Venkatesh Infra Projects P Ltd and M/s APCO Infratech P Ltd.Lokpal order dated On January 10, 2024 was followed by suspension of 29 officers on January 19, 2024.

It has been gathered that around May/June 2024 Ghaziabad Branch of CMO-SAIL has appointed NOHAR CHAND LOHA BHANDAR as its “Distributor” for TMT Bars.