SAIL: Top Officials Suspended Amidst Commercial Dealings Probe
Steel Authority of India Limited (SAIL) finds itself in a challenging situation as it undergoes a major shakeup with the suspension of two directors and multiple executive-level officers. This move comes in the wake of alleged discrepancies in commercial dealings, prompting the Lokpal to direct the Central Bureau of Investigation (CBI) to initiate a probe into SAIL’s interactions with Venkatesh Infra Projects and Avon Steel Industries.
The suspended directors are V S Chakravarthy, holding the position of Director (Commercial), and A K Tulsiani, who served as Director (Finance). Additionally, 26 Below Board Level officials of the company are placed on suspension with immediate effect, in line with the directives from the Steel Ministry.
While the company statement acknowledges the suspension, it refrains from divulging specific details related to the investigations. However, a representative informed that the probes are centered around commercial matters, and all officers associated with the concerned deals are suspended pending further investigation.
The Lokpal’s order, issued earlier this month, highlighted discrepancies in SAIL’s dealings with Venkatesh Infra Projects and Avon Steel Industries. Specifically, it was alleged that the steel sold by SAIL to Venkatesh was priced significantly below what was offered to other companies. Furthermore, the dealings with Avon were marred by a lack of due diligence.
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In response to these developments, the steel ministry also suspended V Suresh, who held the position of Director (Commercial) at NMDC, another public sector undertaking under its administrative control.
The Lokpal’s directives go beyond mere suspensions. SAIL is instructed to formulate a clear and unambiguous policy concerning Memorandum of Understanding (MoU) pricing and relaxation. This policy is expected to have a hierarchical structure that can effectively fix responsibility and ensure accountability, thereby avoiding losses to SAIL.
Chairman of SAIL, Amarendu Prakash, reassures stakeholders that the company’s business continues as usual despite these challenges. He emphasizes SAIL’s commitment to upholding the highest standards of corporate governance and ethical conduct, aiming to maintain the company’s performance amid the ongoing developments. The situation underscores the critical importance of transparency and adherence to ethical standards in corporate dealings within the steel industry.
FAQs: SAIL
1. Why were SAIL officials suspended?
- The suspension follows discrepancies in commercial dealings at Steel Authority of India Limited, involving Venkatesh Infra Projects and Avon Steel Industries.
2. Which officials were suspended?
- Directors V S Chakravarthy (Commercial) and A K Tulsiani (Finance), along with 26 Below Board Level officials, were suspended.
3. What triggered the suspension?
- An order from Lokpal cited issues in dealings, including selling steel to Venkatesh below market price and lacking due diligence with Avon.
4. What is the Central Bureau of Investigation’s role?
- The CBI has been directed to investigate it’s dealings with Venkatesh Infra Projects and Avon Steel Industries.
5. What directives did Lokpal issue to SAIL?
- It is instructed to formulate a clear policy on Memorandum of Understanding (MoU) pricing and relaxation to ensure accountability and prevent losses.
