One Man’s Picnic, Misery for Others: Union Questions RINL Director Finance’s Four-Star Hospitality – Complaint Reaches PMO

The episode brings to mind the famous, though historically disputed, anecdote about the French Revolution. When told that the people had no bread to eat, Queen Marie Antoinette supposedly responded, “Let them eat cake.”

More than two centuries later, the contrast seems strikingly familiar at RINL. Employees are waiting for their pending wages, VRS compensation and other legitimate dues, while the union alleges that a senior executive is enjoying four-star hospitality at the company’s expense.

One man’s picnic, misery for others. The question is whether those managing public money understand the hardships of those who keep the organisation running.

Rashtriya Ispat Nigam Limited (RINL) or the Vizag Steel Plant is known to be a cash-strapped entity for years now. Financial stress in paying salaries, allowances, electricity bills, security bills to CISF (which was withdrawn later), lack of promotions etc. etc. etc. The Steel PSU has been battling with these issues for a long time now.

But one senior executive – Director Finance of RINL, Vinay Kumar, seems to be living in a world of his own. Despite being allotted an official residence, as per his seniority and designation, this person seems to be in love with the luxuries of life. He has shunned the official residence and is living in the “Premium Four Star” Guest House of RINL – Hill Top Guest House and that too, for months together now.

Padi Trinath Rao, General Secretary, Visakha Steel Employees Union VSEU, RINL Visakhapatnam Steel Plant, has written to the Prime Minister’s Office, on behalf of employees of RINL

Rao says that on their representation to the Ministry of Steel regarding this lavish spending by Director (Finance) the reply from the Ministry was “ridiculous misleading and without full details” and said the Director (Finance) got approval of competent authority, which happens to be the Chairman and Managing Director which says, “it is as per earlier practice”.

The complaint goes on to say that –

Key Allegations and Issues Raised by VSEU Against RINL Director (Finance)

1. Prolonged Stay in Four-Star Guest House: The Director (Finance) has allegedly been staying continuously for several months with his family in RINL’s luxurious four-star guest house, which is meant for short stays by VVIPs and visiting dignitaries.

2. Double Expenditure on Accommodation: Despite having an officially allotted bungalow, the Director (Finance) has allegedly kept it vacant while RINL continues to incur maintenance expenditure on the bungalow as well as the guest house.

3. Lavish Hospitality at Nominal Charges: The Director (Finance) and his family allegedly receive free four-star accommodation, with only ₹150 per day charged for breakfast, lunch, dinner and additional food on demand. The union estimates:

• Food expenditure: Approximately ₹3,000 per day per guest.
• Hotel services and accommodation: ₹12,000–15,000 per day.
• Total estimated expenditure: ₹15,000–18,000 per day.
• Estimated monthly expenditure: Around ₹5 lakh.

4. Disparity Between Executive Hospitality and Employee Facilities: While management is allegedly deducting employee allowances, keeping salaries pending, withholding HRA and increasing electricity charges, the Director (Finance) and his family are receiving extensive hospitality for ₹150 per day. Ordinary employees are charged ₹65 for a limited meal and ₹145 for limited biryani at India Coffee House canteens inside the plant.

5. Priority in Salary and Allowance Payments: The union alleges that the Director (Finance) draws his full salary before employees’ salaries are released. A similar situation allegedly exists regarding allowances, with payments being released only after employees raised objections.

6. Misuse of Guest House and Tax Implications: The union questions the prolonged use of a four-star transit guest house as a permanent residence, allegedly compromising its dignity and purpose, while the allotted bungalow remains vacant. It also alleges that the arrangement enables the Director (Finance) to avoid tax liabilities on accommodation perks and HRA-related benefits, reportedly involving lakhs of rupees annually.

7. Alleged Financial Irregularities in Coal and Ferro-Alloy Transactions: The union alleges irregularities in coal realisation and transactions involving poor-quality ferro alloys. It questions why payments were made to the concerned companies without proper inquiry and why no action was taken to protect RINL’s financial interests.

8. Ministry of Steel’s Incomplete Reply:

• The Ministry’s response does not disclose the actual cost of the Director (Finance)’s accommodation and hospitality.
• It does not specify how much the Director (Finance) is paying.
• The Ministry reportedly justifies the arrangement on the grounds that it was approved by the competent authority and follows earlier practice.
• The union questions the justification, pointing out that the approving authority is only one rank above the Director (Finance).
• VSEU argues that an inappropriate past practice should be discontinued rather than continued, particularly during RINL’s financial crisis.

9. Employee Dues Pending Amid Lavish Expenditure: RINL is allegedly unable to clear legitimate pending liabilities, including:

• Wage and salary-related dues.
• VRS compensation.
• Earned Leave (EL) encashment.
• Outstanding group medical insurance-related payments for retired employees.

The union questions how RINL can continue spending lakhs of rupees on executive hospitality while employees and VRS optees await their legitimate dues.

Demands Made to the Prime Minister

VSEU has requested the Prime Minister to order:

1. Independent Inquiry: Investigation into the total expenditure incurred on the Director (Finance)’s guest-house stay, including room rent, food, services and maintenance of the vacant bungalow, from the date of his joining.

2. Identification of Approving Authority: Examination of who authorised the prolonged stay and whether it violated applicable guest-house rules.

3. Disclosure of Financial Details: An explanation from the Ministry of Steel regarding why its reply did not disclose the actual expenditure incurred by RINL and the amount paid by the Director (Finance).

4. Recovery and Accountability: Recovery of excess expenditure, fixation of responsibility and immediate discontinuation of such lavish expenditure.

5. Clearance of Employee Dues: Directions to RINL to clear pending legitimate dues of working employees and VRS optees on priority.