SAIL Scam Deepens: CBI Tightens Noose Around ₹300+ Crore Steel Racket
The probe has widened to include more than 35 private companies that allegedly received steel supplies bypassing established norms
The investigation into the alleged multi-crore scam involving the Steel Authority of India Limited (SAIL) is clearly entering a decisive phase, with the Central Bureau of Investigation (CBI) intensifying its probe into what is now widely believed to be a ₹300–₹400 crore financial racket.
Preliminary estimates suggest a financial loss of ₹300–350 crore to SAIL. It has emerged that large quantities of Streel particularly TMT Steel was supplied in large quantities to fake or ineligible companies. Initial findings indicate that the irregularities were not confined to a single plant but spread across a wider network.
Whistleblower Rajeev Bhatia Forced into Premature Retirement; Probe Reaches Top Management
The scam was brought to light by whistleblower Rajeev Bhatia, who had earlier flagged irregularities in steel supply at the highest levels. However, due to alleged protection extended by certain officials, action was delayed.
Subsequently, on February 11, 2025, the case was formally registered under CVC provisions (Rule 56A).
1.5 Lakh Tonnes of Steel Expose the Scam
Investigations reveal that around 1.5 lakh tonnes of steel were supplied to so-called project companies under the pretext of legitimate projects. However, many of these firms were not eligible under the scheme.
The Lokpal ordered a vigilance probe on January 10, 2024, following which the CBI registered an FIR on October 10, 2024, formally initiating the investigation.
29 Senior Officers Suspended, Reinstatement Raises Questions
After the probe began, SAIL suspended 29 senior officials, including those at the director level. However, in a controversial move, they were reinstated on June 28, 2024, even while the investigation was ongoing.
This decision has raised serious concerns regarding transparency and accountability within the organization.
35 Private Companies Under Scanner
The probe has widened to include more than 35 private companies that allegedly received steel supplies bypassing established norms.
These firms span sectors such as:
- Infrastructure
- Real Estate
- Engineering
- Textile
- Automobile
- Energy
Sources suggest that several of these companies may be interconnected.
Controversy Over Legal Expenses from Public Funds
Another major controversy has emerged over the use of public funds to cover legal expenses of officials under investigation.
Reports indicate that over ₹70 lakh has already been spent. Questions are being raised on whether this amount should be recovered from the concerned officers personally.
Questions Raised on CMD; Resignation Speculation
Sources indicate that even the current CMD of SAIL could come under scrutiny. Allegations suggest that approvals for steel supply were granted despite knowledge of irregularities.
This has triggered speculation about possible resignation or administrative action at the top level.
The Big Question: Will There Be Accountability?
The case has raised serious concerns about governance and accountability in public sector undertakings. The key question now is whether strict action will be taken against those responsible, or if the case will fade into bureaucratic inertia.
