CBI Probe Sought Against RINL AITUC President Over Alleged Illicit Collections, Disproportionate Assets

A detailed complaint has been submitted to the Ministry of Steel and vigilance authorities seeking a thorough investigation, including a possible CBI enquiry, into allegations of corruption, illegal collections, abuse of position and disproportionate assets against K.S.N. Rao, General Foreman, Steel Melting Shop (SMS), and President of the AITUC union at Visakhapatnam Steel Plant (VSP).

The complaint was submitted by CHV Satyanarayana, Secretary, AITUC, Visakhapatnam Steel Plant, and addressed to the Secretary, Ministry of Steel, Joint Secretary (Vigilance), CBI, CVO-RINL and CMD, RINL. The complainant has sought verification of alleged assets, bank transactions, properties and possible benami holdings.

According to the complaint, Rao allegedly accumulated assets and cash estimated at around Rs 8 crore and approximately 2 kg of gold through unlawful means between 2019 and the present. The complaint requests that the investigating agencies independently verify the allegations rather than treating the figures as established facts.

Alleged collections from family pension beneficiaries

One of the allegations relates to the Family Pension Scheme during the COVID-19 period.

The complaint states that around 125 VSP employees died during 2020 and that eligible family members were entitled to family pension benefits, including Basic Pay plus Dearness Allowance up to the notional age of 60 years.

It is alleged that some bereaved families were unaware of the entitlement and were allegedly told that the benefit could be obtained only through the intervention of the union leader. The complaint alleges that approximately Rs 5 lakh per family was collected from nearly 30 families.

Alleged irregularities at Community Welfare Centres

The complaint also raises allegations concerning the functioning of Community Welfare Centre-I and Community Welfare Centre-II (CWC-I and CWC-II).

It states that the recognised union exercises administrative control over the centres and alleges that T. Satya Narayana, who was Treasurer in 2023, was given additional charge as Secretary on December 31, 2023, on a temporary basis and continued in that position.

According to the complaint, contractors engaged for flower decoration and electrical arrangements at CWC-II were allegedly made to pay unofficial charges. With around 200 functions a year, the complaint estimates alleged collections at Rs 50–60 lakh annually, amounting to approximately Rs 2.5 crore over the last two-and-a-half years.

Allegations concerning Injury on Duty cases

The complaint further alleges irregular approval of Injury on Duty (IOD) cases between 2020 and 2025.

It alleges that some injuries that occurred outside the plant premises were allegedly shown as IOD cases to enable employees or their families to obtain benefits. According to the complaint, each such case could involve benefits of approximately Rs 80–90 lakh, while alleged collections from families were in the range of Rs 25–30 lakh per case.

The complaint also alleges that substantial amounts were collected in connection with employment appointments and names U. Ramanayya, CWC Secretary, Peddagantyada, as an alleged intermediary. These allegations have been sought to be investigated by the authorities.

Alleged collections linked to VRS benefits

Another allegation concerns employees who approached the union following implementation of the Voluntary Retirement Scheme (VRS).

The complaint states that around 30–40 employees allegedly approached Rao over concerns about receiving their pending VRS benefits. It alleges that approximately Rs 1.5 crore was collected from such employees on the promise of assisting them in securing their benefits.

The complaint further alleges that gold ornaments weighing approximately 2 kg were accumulated through illegal means.

Properties listed for verification

The complainant has also provided details of properties that he wants the investigating agencies to verify as allegedly belonging to Rao or being held through benami arrangements.

These include alleged residential plots measuring approximately 1,200 square yards at Gollalapalem Village, 1,000 square yards at Ajanagiri, and another plot measuring approximately 600 square yards behind a cremation ground on the road from Aganampudi to Duvvada Railway Station.

The complaint additionally alleges that a luxury house was purchased for Rao’s daughter Kotta Mounika and her husband, who is employed at BHEL in Bengaluru. It also alleges that educational expenses of his son Kotta Aravind, who is pursuing cardiology studies at DM College, were financed through allegedly illegal funds. These claims have been presented in the complaint for verification.

Complaint seeks scrutiny of management officials

The complainant has also urged the authorities to examine the possible role of officers and senior management officials in the alleged activities.

According to the complaint, delays in settlement of employee benefits, including employee separation benefits and VRS-related payments, allegedly created opportunities for collections from employees seeking assistance. It has therefore requested investigation into whether any directors, senior managers or other public servants had any connection with, or facilitated, the alleged activities.

The complaint specifically seeks examination of financial transactions, disproportionate assets, alleged benami properties and the possible involvement of public servants. It requests appropriate legal action if the allegations are substantiated.

Vigilance clearance issue raised

The complaint also highlights what it describes as an unusual development in the history of RINL-VSP, stating that vigilance clearance of a trade union leader has allegedly been withheld by the RINL Vigilance Department. The complainant has cited this as another reason for seeking an independent enquiry.

In a separate representation addressed to the Ministry of Steel, the complainant stated that he was due to retire from service on August 31, 2026, and requested that the matter be taken up urgently. He also stated that he had approached the CBI, CVO and RINL management and was prepared to cooperate with the investigating agency and provide further supporting material.

The allegations contained in the complaint have not been independently established. The requested investigation would determine whether the alleged collections, assets, financial transactions and involvement of other individuals or officials have any factual or legal basis.

Issued by:
CHV Satyanarayana
Secretary, AITUC – Visakhapatnam Steel Plant