When Distributors and FAKE Projects operate in the same market, sell steel in the same market, then why the facility of reduced prices only for FAKE Projects?

A game played with malafide and malicious motives?

Story dated June 08, 2026 titled “SAIL PROJECT SCAM: An Epitome of Corruption, Connivance and Chutzpah” is being revisited.

https://www.bureaugram.com/news/sail-project-scam-an-epitome-of-corruption-connivance-and-chutzpah

Also refer to the story dated Feb 14, 2026 titled “Agarwal Family and SAIL officials: A relationship beyond business”

https://www.bureaugram.com/news/agrawal-family-and-sail-officials-a-relationship-beyond-business

On June 01, 2020, Ghaziabad branch of SAIL-CMO appoints Shalika Enterprises P Ltd is a 2-Tier Distributor of SAIL for TMT Bars for Ghaziabad; Aligarh; Hathras; Bhagpat; Bulandsahar; Gautam Buddha Nagar and Sambhal districts. Subsequently SAIL also appointed it the Distributor for Gorakhpur & Jhansi.

Jag Mohan Agarwal; Shobhit Agarwal and Shalika Agarwal are Directors on the board of SHALIKA ENTERPRISES P LTD

1.     Rather than servicing the requirements of the Agarwal family by offering TMT Bars to them in SHALIKA ENTERPRISES P LTD, why the family was asked to bring new firm namely AB BUILDCON; FUJIYAMA POWER INFRA P LTD; KCC ELECTRIC INFRA; HITECH INFRA SOLUTIONS and RS INFRA PROJECTS?

2.     What was the process followed to select the above 5 Trading firms to give subsidy of Rs 9.0 Crore?

3.     Relationship with the directors of SHALIKA ENTERPRISES P LTD used, but not the firm, why?

4.     What was being hidden by SAIL officials, from whom and why? 

When the Agarwal family was already given Distributorship of the TMT Bars from June 01, 2020, then what was the need of 5 additional firms to sell TMT Bars to the Agarwal family? The reason lies in the pricing policy which is explained below:

How SAIL officials manipulated Project policy/guidelines?

SAIL officials were expected to use the market information-cum-intelligence in the benefit of SAIL but they utilised the same for providing windfall gains to FAKE Projects at the cost of SAIL. 

Whenever prices in the market went up, not only steel supplies are made at the pre-increased prices but at times more quantity is supplied. On the other hand, if the  prices soften after giving the approval, fresh approvals are accorded at lower price without supplying TMT Bars against the approvals/POs of higher prices.

Overlapping approvals are accorded i.e. even when quantity is still pending in the previous approval, new approval is accorded, either to give the benefit of the reduced prices or of the impending price increase.

Even for Genuine Projects above procedure without any checks and balances seems criminal, albeit when used for FAKE Projects it is not only criminal but wicked and nefarious also.

1.      Though the policy provides for and mandates rigorous checks for ascertaining whether a firm is doing any project or construction work, SAIL officials purposely by-passed them to use the price reduction power for Traders/FAKE Projects. These FAKE Projects procured the TMT Bars and other steel products from SAIL at heavy discounts and sold them in the open market for windfall gains.

2.      The power to keep the prices fixed or constant for a period of three months is the deadliest weapon in the hands of SAIL officials and has been gathered that the same is blatantly used by them to kill the top and bottom line of SAIL.

3.      At times when the steel market indicates signs of buoyancy and upward price trends, SAIL officials use the constant price power and approve the prices to particular Projects just before the management revises their price reduction limits. Though this approach a perfect ground is also prepared for the FAKE Projects for earning huge margins vis-à-vis the Distributors. It is noteworthy that when Distributors are paying increased prices, FAKE Project keep on getting the steel on pre-approved/pre-increased  prices, although both have to sell the steel in the same market.

4.      Sales officials of SAIL-CMO, particularly on Regional Manager and above level, are well aware of the steel market behaviour. However, by chance if the assessment of the SAIL officials go wrong and instead of going up, prices start softening in the market due to some unforeseen event(s), buyer can always refuse to buy and ask for re-negotiation for further reduction in the prices.  In the nutshell, whenever prices are on the uptick, SAIL officials keep on selling the steel at pre-approved prices. The moment prices fall; SAIL officials reduce the prices.

5.      Above is explained from the data captured with respect to Venkatesh Infra Projects P Ltd as obtained from letter Ref No CH/1/1 dated July 31, 2023, through which Arindam Dasgupta, Executive Director of Chairman’s Sectt. had forwarded the comments of Chairman SAIL Amarendu Prakash to Neeraj Agarwal, Director (Vigilance) of Ministry of Steel, on the report of CVO SAIL submitted to the Ministry of Steel with respect to complaints on Venkatesh Infra Projects P Ltd and Avon Steel Industries P Ltd.

The above table reveals that most of the approvals were accorded to Venkatesh Infra Projects P Ltd during the fag end of the month just before the next month price announcement and that too for sufficiently large quantities.

Though the people conversant with the steel market would be able to fully understand the game hidden in the above data, for others the same is explained using the data of first two rows.

On Oct 28, 2020, an approval was accorded for a price of Rs 35,500 per tonne for 14,500 T of TMT Bars. SAIL officials were fully aware that on Nov 01, 2020, increased prices for the month of Nov 2020 would be announced. Therefore, the approval was accorded three days before the price increase so that the firm can keep on getting the TMT Bars @ Rs 35,500 per tonne till Dec 2020. It may be noted that prices were increased by about Rs 6000 per tonne during each month of Nov 2020 and Dec 2020. In simple terms, during the last week of Dec 2020 when others or distributors were getting TMT Bars @ Rs 48,000 per tonne, Venkatesh was getting the same TMT Bars @ Rs 35,500 per tonne i.e. at a price 12,500 per tonne lower – a discount of about 25%.

(The above article has been written based on Bureaugram’s extensive research and inputs from various sources including sources from SAIL)