No sooner did the news of resignation of Amerandu Prakash from the position of Chairman, Steel Authority India Limited (SAIL) begin to percolate through PSU sector and the corridors of Government due to an ongoing saga of deteriorating relations between him and Ministry of Steel than there are also murmurs how it all began?

According to sources, the countdown of Amerandu Prakash had started the day when he took over as CMD, SAIL on May 31, 2023 while Lokpal of India was investigating the complaints of corruption and financial irregularities against SAIL officials lodged by a Whistle Blower named Rajeev Bhatia.

Based on the preliminary investigation reports of CVO SAIL acting upon the complaint letters by the Whistle Blower, the Ministry of Steel alerted the Chairman-SAIL that as substantial merits have been found in the complaints for supplies to M/s Venkatesh Infra Projects P Ltd and M/s Avon Steel Industries P Ltd, and name of M C Agrawal (then Executive Director (Sales & ITD) at Central Marketing Organization of SAIL) appeared in both of them. The Ministry instructed the Chairman that a regular departmental action should be initiated against M C Agrawal before he retires on July 31, 2023.

Instead of taking action, the Chairman refused to initiate regular departmental action against M C Agrawal, the sources said.

The Chairman allegedly kept the Ministry in the dark. On one hand Amarendu Prakash told the Ministry that nothing wrong has happened in supplies to M/s Venkatesh Infra Projects P Ltd and M/s Avon Steel Industries P Ltd and on the other hand he assured the Ministry that steps have already been taken up in this respect.

By defying instructions of the Ministry of Steel, Amarendu Prakash allegedly paved the way for M C Agrawal to superannuate normally on July 31, 2023 and paid him all his retiral benefits. Subsequently, Agarwal went on to join as Director on the board of M/s OFB Tech Private Limited on October 4, 2023.

It is noteworthy that SAIL has supplied over 3 lakh tonnes of Steel to 11 firms which are connected to M/s OFB Tech Private Limited. These are firms: OFB Tech Private Limited; Lendcierge Estate PVT Ltd; Noble Tech Industries Private Ltd;OFCONS Projects & Services P Ltd; Artisty Infracon LLP; Strike Infracon LLP; Zarielle Projects and Services LLP; Shree Sidhbali Ispat Limited; SMW Ispat Private Limited; Fiesto Infra Projects Pvt Ltd and Oagri Farm P Ltd.

It has been gathered that likewise M/s Venkatesh Infra Projects P Ltd, these firms were also not doing any project work but under its head of sales M C Agrawal, CMO- SAIL supplied steel to them at exorbitantly low prices using the guidelines applicable for projects, causing substantial loss to the exchequer of SAIL. The matter related to supply of steel to above firms is under investigation of Lokpal of India.

The Chairman had assured the Ministry of Steel of taking steps for the improvement of the system but overriding his own assurance supplied lakhs of tonnes of steel to multiple firms in the name of projects when they were not doing any project work. His dilly-dallying attitude and shielding corrupt officers caused tug-of-war between him and the Ministry resulting in the submission of resignation from the position of Chairmanship.