CMD Amerandu Prakash not only deliberately ignores “writing on the wall” but possibly “lies” and “connives” also

Who has tied Ministry’s hands and why?

Whom they are protecting and why ?

Why Ministry and PMO are silent on harassment of Whistle Blower : Rajeev Bhatia ?

Who will be responsible if something happens to the Whistle Blower and his family?

Where are the principles of Corporate Governance?

Where is Vigil Mechanism ?

Where is Whistle Blower Protection Mechanism?

It is adequately recorded in the media reports that before sending the complaint on sale of steel to Venkatesh Infra Projects P Ltd to LOKPAL of India, the Whistle Blower Rajeev Bhatia sent the very complaint to Soma Mondal and V S Chakravarty, the then Chairman and Director (Commercial) of SAIL on November 17, 2022.

Principles of Good Corporate Governance demanded that the duo, as Members of SAIL Board, have provided protection to the Whistle Blower from retribution and vendetta and initiated investigations in the complaint received from him.  Instead, they buried the complaint under the carpet and suspended the Whistle Blower on November 24, 2022.

It is only when both did not take any action on the complaint, instead suspended the Whistle Blower on November 24, 2022, Bhatia lodged the complaint with LOKPAL of India in February 2023. It has been gathered that in between, three times Bhatia sent the same complaint to PMO. From PMO the complaint came to Soma Mondal but she buried the same on all the three occasions.

Matter is not limited to burying the complaint under the carpet and suspending the Whistle Blower. Both Soma Mondal and V S Chakravarty took no action in stopping sales to Traders in the name of Projects, which was the central point of Bhatia’s complaint sent to them. Rather the sales accelerated.

After the superannuation of Soma Mondal on April 30, 2023, Amerandu Prakash took over as Chairman SAIL and Modi government rewarded Soma Mondal with a prize posting of Member, PESB.

Prakash joined SAIL in 1991 as a Management Trainee (Technical). After working in various positions of responsibilities in plants and units, Amarendu Prakash was selected as a Director in the SAIL Board in charge of Bokaro Steel Plant in 2020. In between, during 2016 to 2020, he also worked in the Chairman’s Office also. Although multifunctional experience was provided to him by SAIL, but after taking over as Chairman, he also chose not to stop the sales to Traders in the name of Projects.

In July 2023, Ministry of Steel shared the findings of the investigation report of CVO-SAIL in the matter of steel supplies to M/s Venkatesh Infra Projects P Ltd with him. In return, on July 31, 2023, Prakash conveyed to Ministry of Steel that a team of officers has been formed to explore the possibilities of improvements.

‘Bureaugram.com’ has gathered that apart from Venkatesh Infra Projects P Ltd SAIL officials also supplied over 6,50,000 Tonne of steel to over 40 firms these firms which are under fresh investigations of LOKPAL/CBI. Just like Venkatesh Infra Projects P Ltd, all these firms are allegedly involved in Trading / Re-Sale rather than doing any kind of constructions or Project work. Estimated loss to SAIL is over Rs 200 Crores in supply of 6,50,000 Tonne.

Out of 6,50,000 Tonne, over 3,00,000 Tonne of steel have been supplied by SAIL after the receipt of complaint on Venkatesh Infra Projects P Ltd from the Whistle Blower. 

The above-mentioned sale of over 3,00,000 Tonne also proves a point that Bhatia was suspended so that sales to Traders in the name of Projects can be kept running without any interference. At the same time, it also shows that CMD SAIL Amerandu Prakash did not took any action to stop these illegal sales despite assuring Ministry of Steel to do so.

Soma Mondal and  Mahesh Chand Agarwal, the prime accused in the complaints of Rajeev Bhatia, placed the above letter of CMD SAIL Amerandu Prakash before LOKPAL as defence but LOKPAL did not attach any importance to the same and probably rightly so. It is a million-dollar question how a correspondence between CMD SAIL and Ministry of Steel landed in the hands of the two accused officers who were already retired.

In the letter, CMD SAIL also tried to take shelter in COVID pandemic to justify the sales to Venkatesh Infra Projects P Ltd. However, when ‘Bureaugram.com’ saw the timelines of sales to the firms which are under fresh investigations of LOKPAL/CBI, they belong to Pre-COVID and Post- COVID period also. It suggests that the COVID argument was brought to only misguide and fool the Ministry of Steel and investigating agencies.

Bereft of any justified and defendable reason, in addition to taking shelter in COVID pandemic, Amerandu also tried to take refuge in the “Ease of Doing Business” jargon of Modi government. The arguments are nothing but desperation of Amerandu to defend the indefensible.

In order to help and protect the erring officials of SAIL, the endeavours of Amerandu are not limited to misguiding Ministry of Steel, LOKPAL, and CBI. Although, Soma Mondal and Mahesh Chand Agarwal had already superannuated, Amerandu hired highly paid counsels to defend the officials before the LOKPAL bench and paid fee of about Rs 70 lakhs from SAIL exchequer. It is further pertinent that out of the 13 lawyers who appeared before the bench and got payment from SAIL, one was the daughter-in-law of Mahesh Chand Agarwal and daughter of Sanjay Agarwal (presently ED(CIG) at SAIL. Sanjay  Agarwal was also one of the accused. This is blatant violation of the Code of Conduct applicable for senior officials of SAIL. Another low in Corporate Governance.!!

Now ‘Bureaugram.com’ placed before you the three most critical points of sales to Traders camouflaged as Projects

    1.   LOKPAL order dumped

The audacity of SAIL officials in continuing the supply to the firm even after the order dated January 10,2024 where LOKPAL handed over the sales issue of M/s Venkatesh Infra Projects P Ltd to CBI. Not only the matter was handed over to CBI but LOKPAL made scathing remarks on the functioning of SAIL and directed SAIL to formulate a clear and unambiguous policy with regard to MOU, pricing and relaxation.

Source : Order dated January 10, 2024 of Honourable LOKPAL of India

https://lokpalonline.gov.in/lokpalonline/cdn/web_upload/CN73,74and752023_1705052862.pdf

Height of the matter is that immediately after order dated January 10 ,2024 of LOKPAL, 29 officials were suspended by Ministry of Steel on January 19, 2024 but even such an act could not deter SAIL from supplying steel to Traders in the name of Projects.

    2.   SAIL officials were in great hurry

Whistle Blower Rajeev Bhatia in his complaint on Venkatesh Infra Projects P Ltd highlighted the timelines of incorporation of company and start of steel supply. The same were recorded in the order dated January 10, 2024 of LOKPAL while handing over the matter to CBI.

 Source : Order dated January 10, 2024 of Honourable LOKPAL of India

https://lokpalonline.gov.in/lokpalonline/cdn/web_upload/CN73,74and752023_1705052862.pdf

Through the data given below ‘Bureaugram.com’ brings out the same for various other firms which are under scanner of LOKPAL/CBI. The gap between the timelines varies from zero day to one day to one month to few months to 1 year. Bureaugram.com’ feels that forget months the gap of one year also too little to gain work experience for the projects commensurate to the quantity of TMT Bars supplied to them by SAIL officials.

 Some of the glaring examples from above are :

1. SHUBHAM BUILDERS : Got GSTIN and started business with SAIL on the same day.

2. SHREE BALAJI CONSTRUCTION : Started business with SAIL from the next day of getting GSTIN.

3. VENKATESH INFRA PROJECTS P LTD : Got GSTIN and in weeks’ time SAIL officials signed Project MOU with it.

4. GHAZIABAD BETA CONSTRUCTION : Got GSTIN and started business with SAIL in the same month.

5. LEELAWATI CONSTRUCTION COMPANY; AB BUILDCON; RUDRANATH INFRA AND CONSTRUCTIONS P LTD; BBTP BUILDTECH P LTD; PRECISE INFRA PROJECTS; R J INFRA & PROJECTS; HITECH INFRA SOLUTIONS; FUJIYAMA POWER INFRA P LTD; ARTISTY INFRACON LLP; FIESTO INFRA PROJECTS P LTD : Started business with SAIL with in one to three months of getting GSTIN.

3.   Everest of Connivance

In the end ‘Bureaugram.com’ places before the readers the most disturbing part of the SAIL PROJECT SCAM. Most of the firms who have been camouflaged as Projects belong to the same promoters who are already in business with SAIL as “Traders”/”Dealers” in their other firms. New firms were incorporated/floated or brought in with the sole purpose of buying steel from SAIL at heavy discounts in the name of Projects and sell it in the open market for  windfall gains, possibly mutual. If would not be an exaggeration that SAIL officials might have suggested the promoters of existing firms in business with SAIL to bring new firms.

Whether the SAIL PROJECT SCAM is an oversight or a well thought of act ?, in the light of the facts placed above, ‘Bureaugram.com’ leave it to prudence of the readers and investigating agencies.