SAIL Steel Scam: CBI’s Expanding Probe Rattles Steel Majors and PSU Executives
Whistleblower Rajeev Bhatia, who was forced into premature retirement, continues his lone legal battle seeking reinstatement
And when the cat came out of the cage, they all ran helter and skelter...
Acting on the directions of the Lokpal of India, the Central Bureau of Investigation (CBI) has reportedly widened the scope of its ongoing probe against officers of Steel Authority of India Limited (SAIL) over alleged large-scale irregularities in the supply of steel to non-project firms by misusing the Project Works Scheme.
The case first surfaced with the supply of over 1.5 lakh tonnes of steel to M/s Venkatesh Infra Projects Private Limited. On January 10, 2024, the Lokpal ordered a detailed CBI inquiry, following which the agency registered an FIR on October 10, 2024.
In the immediate aftermath of the Lokpal’s order, 29 senior SAIL officers were suspended, including:
- V S Chakravarty, Director (Commercial) – (Now Retired)
- Anil Kumar Tulsiani, Director (Finance) – (Now Retired)
- V Suresh, later transferred to NMDC as Director (Commercial)– At present serving as CMD of MOIL Limited
However, these suspensions were revoked on June 28, 2024, citing delays in the CBI investigation.
Lokpal Flags Incomplete CBI Report
The CBI submitted its investigation report vide covering letter dated May 9, 2025 (No. DP0992025/858/33/11/2024/Lokpal(8)/PD). But in its order dated July 2, 2025, covering multiple complaints (Nos. 73/2023, 74/2023, 146/2024, 155/2024, 168/2024, 135/2024, 180/2024 and 195/2024), the Lokpal observed that the report was largely confined to Venkatesh Infra and failed to adequately examine wider allegations.
The Lokpal categorically stated that consideration of the report dated May 7, 2025, should not be rushed and directed that all complaints be examined analogously, as they allege that SAIL officials extended undue benefits to firms not eligible under the Project Works Scheme and knowingly allowed diversion of steel meant strictly for project use.
CMD’s Role Under Scanner
Sources allege that SAIL Chairman Amarendu Prakash not only prematurely terminated whistleblower Rajeev Bhatia under Rule 56(j) CCS but also went against Ministry of Steel directions by giving a clean chit to Mahesh Chand Agarwal, then ED (Sales & ITD).
Despite assuring the Ministry of Steel (vide letter No. CV/Comp/167/2023/CV-CMO/52 dated 31.07.2023) that system improvements would be undertaken, Prakash allegedly allowed continued supply of steel to “traders” under the guise of “projects”.
In sharp contrast, he is said to have actively lobbied for revocation of suspension of the 29 officers and, after their reinstatement, reposted several of them to sensitive positions while promoting some — even as CBI investigations remained pending.
Further raising eyebrows, Prakash allegedly authorised payment of nearly ₹70 lakh from SAIL’s exchequer to lawyers and advocates to defend former CMD Soma Mondal and Mahesh Chand Agarwal before the Lokpal.
Following this, it is learnt that the CBI has initiated a deeper probe into supplies made to several other firms, including:
| Company Name | Company Name |
|---|---|
| Brick2wall Infratech Pvt Ltd | OFB Tech Private Limited |
| Lendcierge Estate Pvt Ltd | Noble Tech Industries Private Ltd |
| Artisty Infracon LLP | Strike Infracon LLP |
| Zarielle Projects and Services LLP | Shree Sidhbali Ispat Limited |
| SMW Ispat Private Limited | Oagri Farm Pvt Ltd |
| OFCONS Projects and Services Pvt Ltd | AB Buildcon |
| Fujiyama Power Infra Pvt Ltd | Hitech Infra Solutions |
| RS Infra Projects | Raunaq Foundations |
| Ralago Engineering Pvt Ltd | Jalan Projects & Merchants Pvt Ltd |
| Bharat Infra and Constructions | BBTP Buildtech Private Limited |
| Shree Balaji Construction | Rudranath Infra and Constructions Pvt Ltd |
| Shubham Builders | Amber Industries |
| Rainbow Vanijya Private Limited | Sentire Technologies |
| Silverwater Metals & Minerals Pvt Ltd | SNG Constructions and Interiors |
| RJ Infra & Projects | Pneu Mech Marketing Pvt Ltd |
| First India Infra Pvt Ltd | Aadya Buildwell Pvt Ltd |
| Powermech Industries | Sarawagi Rice and Oil Mill Pvt Ltd |
| PVV Infra Limited |
Whistleblower Targeted
Sources confirm that Rajeev Bhatia is the whistleblower in all these cases. He had earlier flagged alleged irregularities involving Venkatesh Infra Projects Pvt Ltd and Avon Steel Industries Pvt Ltd.
Instead of being commended, Bhatia was forced into premature retirement on February 11, 2025, allegedly through illegal invocation of Rule 56(j) CCS.
Described by colleagues as a person of high integrity and commitment to the PSU and the nation, Bhatia’s removal has reportedly not gone down well with the Prime Minister’s Office.
Growing Political Heat
With Lokpal-directed expansion of the probe, the case is now being viewed as a scam of significant magnitude, with indications of a possible criminal nexus involving senior SAIL officials. Sources claim CMD Amarendu Prakash himself is under scrutiny for allegedly permitting supplies to multiple entities despite being aware of irregularities.
Meanwhile, speculation continues in power corridors over reports that the government has accepted Prakash’s resignation — reportedly influenced by the controversial termination of the whistleblower and mounting financial irregularities, especially in the backdrop of Prime Minister Narendra Modi’s clear-cut zero-tolerance policy towards corruption.
Sources further argue that since Prakash failed to secure a favourable Lokpal order despite engaging expensive legal counsels at SAIL’s cost, the Ministry of Steel should direct recovery of the legal expenses from him personally, or from Soma Mondal and Mahesh Chand Agarwal.
The golden question is this: while still occupying the chair of CMD, SAIL, will Amarendu Prakash continue to bleed the Maharatna steel PSU by authorising official payments for the legal defence of officers—now under CBI summons—despite those lawyers having been engaged by the individuals in their personal capacity?
We Report, You Decide…
