Soma Mondal: Will she get another term as Member PESB?
Soma buried the corruption complaints and then had to go to Delhi High Court to stay CBI investigation in the same complaints
Continues as Member, PESB when 29 officers suspended
Lot of money spent by SAIL on her image makeover through Media Houses before her superannuation
The ‘bureaugram.com’ came across a news article published on December 6, 2023 in a newspaper that referred to Soma Mondal, the then Chairman of Steel Authority of India Limited as ‘Queen of Steel’. With many cases of corruption and misgovernance in SAIL surfacing, the ‘bureaugram’ considered it most appropriate and meaningful to do an article on the “Queen of Steel”, a hyperbolic metaphor used for her by Media.
The saga of Meteoric Rise of Soma would be incomplete without mention of Anshuman Das
Anshuman Das who possesses a degree in mechanical engineering from REC, Rourkela (Now National Institute of Technology) i.e. the same institute from where Soma graduated in Electrical Engineering. After starting his career with the Hindustan Aeronautics Limited, Das joined NALCO in 1982. As Director(Commercial), he was given the charge of CMD, NALCO in Aug 2012, before being posted as full-time chairman and CMD in July 2013.
In Aug 2015, Das was appointed as Member, PESB. Media reports at that time claimed that Das is the first person from Odisha to be appointed member of PSEB. He was also given additional charge of Chairman PSEB, which he relinquished in Aug 2018.
Profile of Soma Mondal as available on SAIL website
Soma is a graduate in Electrical Engineering from National Institute of Technology, Rourkela, in 1984. Soon after graduating, she commenced her career as a Graduate Engineer Trainee at NALCO and rose through the ranks to take over the mantle of Director (Commercial) at NALCO in the year 2014.
She joined SAIL in March, 2017 as Director (Commercial). At SAIL, she spearheaded the implementation of the marketing strategies emerging from the Comprehensive Turnaround Roadmap for the Company since 2017, which witnessed SAIL increasing its sales and expanding the market reach progressively year on year. Promoting the branding efforts of the various products of the Company, she was instrumental in the launch of new brands viz. “NEX” and “SAIL SeQR” to promote Parallel Flange Structural Sections and TMT Bars respectively.
Sensing the need for improving sales through the retail channels, she has made relentless effort to set up two-tier distribution network. To educate and tap the vast potential of rural India, the “Gaon Ki Ore” workshops were organised in almost all the States and Union Territories across the Country.
For meeting the evolving expectations of the challenging domestic market, Soma Mondal has introduced timely reforms in the Marketing Organisation Structure of SAIL. For better management and marketing of the enhanced volumes after the modernization & expansion of SAIL, she created three verticals viz. Sales, Marketing and Services. This was envisaged to bring in focus and effective micro management in the marketing operations.
Fact checks on the achievements of Soma and Corruption Complaints
A. Parallel Flange Structural Sections, Whistle Blower’s expertise
Parallel flange sections are a new set of products launched by SAIL in 2016 from its two new mills at DSP & ISP. It was Rajeev Bhatia the Whistle Blower, who being a graduate from IIT Delhi with a B.Tech degree in Civil Engineering, developed a number of training modules to promote these new products.
Bhatia conducted over 22 lecture/training workshops and trained over 330 officers of SAIL. Over 27 lectures were delivered at the premises of major infrastructure companies. In addition, lectures were delivered by Bhatia at IIT Madras; SRM University, Chennai; IIT, Jammu; Delhi Technological University, Delhi ; IIEST Shibpur; NIT Durgapur; IIT Kharagpur; HBTU, Kanpur; IIT Kanpur; MANIT , Bhopal; NIT Trichy; NIT Rourkela; NIT Jamshedpur; Assam Engineering College, Guwahati; IIT Guwahati; NIT, Uttarakhand.
B. SAIL SeQR TMT Bars, a niche product only for distributors
For making SAIL SeQR a big success, it was again the Whistle Blower Rajeev Bhatia who prepared a 136-page Manual for Training Workshops for Area Sales Officers (ASOs) and Masons and conducted a few initial workshops himself.
C. Two-tier distribution system, an eyewash to deceive the Ministry, SAIL did not want it to take off, launched to fail
Comprehensive Turnaround Roadmap was submitted by Boston Consulting Group (BCG) to whom a staggering amount of over 84 Crores was paid towards consultation fees/charges. Introduction of Two-tier distribution system for marketing of TMT Bars was the offshoot of the above report.
Although there were many voices both internal and external from some field officers and distributors but no ears were given to them. TMT Bars were being sold to the SAIL Distributors at much higher price than the FAKE PROJECTS. Both the materials were trading in the same market, posing tremendous difficulty and business risk for the SAIL Distributors. Due to complete indifference shown by SAIL towards their concerns, some SAIL Distributors became FAKE PROJECTS in their other firms. As it was a win-win proposition, SAIL officers happily allowed the same. Those who could not become FAKE PROJECTS, started sourcing TMT Bars from other FAKE PROJECTS. SAIL was the only loser in the entire game.
Fake Projects are specially favoured and preferred Traders/Middlemen who are camouflaged as Projects to surreptitiously put the discounts available/approved for Genuine Projects/Construction companies in operation to give illicit financial benefit to them and dent the top and bottom line of SAIL.
D. Soma and FAKE PROJECTS in SAIL, travelled together a long distance
As per estimates given by internal sources of SAIL, time zone wise distribution of sales to FAKE PROJECTS is given below:
Although, supplies to FAKE PROJECTS proved lethal to success of Two-tier distribution system but Soma takes credit and pride in successful implementation of Two-tier distribution network. Preposterous and Laughable!!
Despite getting complaint from Bhatia on Nov 17, 2022, she took no pains to stop the supplies to FAKE PROJECTS. It is only through incessant efforts of Bhatia, shift of Sales from FAKE PROJECTS to Two-tier distributors happened resulting in sizeable annual savings for SAIL. As per internal sources, savings could be Rs 125 to 150 CR annually.
https://www.bureaugram.com/news/sail-project-scam-fake-projects-felling-tmt-still-selling
E. Supplies of SWR14 Grade Blooms to Avon Steel Industries P Ltd: A true White-Collar Corruption using chemical composition of steel as the stealth weapon
It has been gathered from sources that it was the prime responsibility of the Revenue Maximization Team of SAIL to fix the selling prices of the SWR14 Grade Blooms to Avon Steel Industries P Ltd as per the market conditions and end product, more so when the end product i.e. Hot Rolled Coils is also manufactured by SAIL in its plats at Bokaro and Rourkela and its price is also fixed simultaneously by the same team. Soma being the Director (Commercial) and member of the team, owes the maximum liability if the team fails in its job of fixing the right prices.
Some claim that apart from non-steel background, her lack of business acumen and absence of strong administrative capabilities were responsible for ongoing SAIL’s corruption fiasco whereas there are others also who do not buy this argument saying that her 6 year tenure in SAIL spanning from Mar 2017 to Apr 2023, was large enough to understand the "Nitty-gritty" of the steel business for anyone particularly when he/she is at senior most position with battery of officers at his/her command. Moreover, if someone cannot manage the job for which he/she has been appointed on contract by the Government, morality and honesty demands that it is his/her duty to end the contract rather than playing with public money.
F. Image makeover
Sources also claim that a lot of money was spent by SAIL on her image makeover through Media Houses before her superannuation so that she gets a lucrative post in some Government institution after retirement.
FY 2020-21 saw the beginning of a global pandemic in the form of COVID. The period was marked by serious supply chain disruption skyrocketing the commodity prices including steel which continued in the next year also. During 2021-22, SAIL achieved a PAT of Rs 12,015 CR which was significantly higher than the previous year’s PAT of Rs 3,850 CR.
It may be noted that this increase was not limited to SAIL alone. Profits for all the Indian Steel Companies sored massively during 2021-22. For example, TATA Steel (India Operations) achieved a PAT of Rs 33,706 CR against their previous year’s PAT of Rs 17,489 CR.
Though SAIL witnessed a jump of Rs 8165 CR whereas TATA Steel registered a jump of Rs 16,217 CR with similar production and sales level as that of SAIL. SAIL’s performance was not as magnificent as was planted/reported in the media. The hype was created again to build positive and larger than life image for Soma Mondal.
The saga of Meteoric Rise of Soma would be incomplete without mention of Anshuman Das
Anshuman Das who possesses a degree in mechanical engineering from REC, Rourkela (Now National Institute of Technology) i.e. the same institute from where Soma graduated in Electrical Engineering. After starting his career with the Hindustan Aeronautics Limited, Das joined NALCO in 1982. As Director(Commercial), he was given the charge of CMD, NALCO in Aug 2012, before being posted as full-time chairman and CMD in July 2013.
In Aug 2015, Das was appointed as Member, PESB. Media reports at that time claimed that Das is the first person from Odisha to be appointed member of PSEB. He was also given additional charge of Chairman PSEB, which he relinquished in Aug 2018.
Soma and PESB: A highly debatable relationship
Caeser’s wife must be above suspicion
Soma was due for superannuation from SAIL on Apr 30, 2023. Two months prior, i.e. on Feb 28, 2023 itself ACC recommended her name as Member, PESB. The timing of her selection raises many question marks in view of the following facts:
On Nov 17, 2022 Whistle Blower Rajeev Bhatia sent three complaints pertaining to steel supplies to Venkatesh Infra Projects P Ltd; Avon Steel Industries P Ltd and Hi-Tech Pipes(Group) to her which contained detailed analysis and data presented in about 70 pages. She buried the complaints and suspended the Whistle Blower on Nov 24, 2022 without providing him any reason whatsoever. Thereafter charges were framed against Bhatia. The main charge levelled against him was that the allegations levelled in the complaints are insinuations and lack evidence. They are found to be imaginary, malicious, vexatious, and frivolous. It may be noted here that the above charges were framed without any investigation in the complaints.
Witnessing that his complaints would not see the light of the day with PMO, MoS and SAIL, Bhatia lodged the same complaints with LOKPAL of India on Feb 11, 2023. In between the complaints were sent by Bhatia to the Minister of Steel and CVC also. CVO-SAIL received the complaints vide letters dated Dec 19, 2022; Dec 23, 2023 and Apr 17, 2023 respectively from Steel Ministry, CVC, and LOKPAL.
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.
Based on the investigation report submitted by CVO SAIL, vide letter No. 1(7)2023-V&R dated July 28, 2023, Ministry of steel recommended for CBI inquiry into complaint No 73 and 74 of LOKPAL pertaining to steel supplies to Venkatesh Infra Projects P Ltd and Avon Steel Industries P Ltd. The relevant portions of the above letter are reproduced below.
Soma was represented by highly paid senior counsels before the bench of LOKPAL. Height of the matter is that she asked SAIL to pay for her counsels and CMD SAIL Amerandu Prakash willingly agreed also to spend a total of about 70 lakhs from SAIL exchequer. When Amerandu defended Soma, she was Member PESB, a government post under DoPT. Instead of approaching SAIL to bear the legal expenses, why did she not approach Chairperson, PESB or Secretary, DoPT.
After giving due hearing to Soma and others, LOKPAL has found the complaints of corruption substantive and handed them over to CBI for detailed investigations vide its order dated Jan10, 2024.
Although, in both the complaints CBI inquiry was ordered by LOKPAL as early as Jan 10, 2024, but CBI could register the FIRs on Oct 10, 2024 and July 25, 2025 respectively. Had Soma Mondal not challenged the LOKPAL’s order in the Delhi High Court, FIRs could have been registered by CBI immediately after Jan 10, 2024. After intervention of LOKPAL vide its order dated July 07, 2025 followed by interaction with Director CBI on July 15, 2025, CBI registered FIR No.RC2182025A0015 in the matter of Avon Steel Industries P Ltd on July 25, 2025. Who knows knocking doors of the Delhi High Court was a well thought strategy to delay the investigation process.
Though 29 officers were suspended after the LOKPAL’s order, Soma continued as Member, PESB and kept selecting Board Members of various CPSEs. Her tenure as Member, PESB is ending on Apr 30, 2026. It has to be seen whether Modi’s Government would again be extra kind & magnanimous to her and give her extension or some new face will replace her as Member, PESB.
(The above article has been written based on extensive research and inputs from various sources including sources from SAIL)
