NEW DELHI: In one of the biggest such actions in recent years, the government has ordered the suspension of three directors of state-run companies — SAIL and NMDC — as well as other senior executives. In separate stock exchange filings on Saturday, the companies only said that the move follows a directive from the steel ministry.
In an exchange filing, SAIL said that its director (commercial) VS Chakravarthy and director (finance) AK Tulsiani, and four executive directors have been suspended. Meanwhile, NMDC said its director (commercial) V Suresh has been placed under suspension, although it is unclear what led to the decision in his case. The fate of SAIL CMD named in the complaint is, however, unclear as the Lokpal has not named the top-most executive.
While company spokespersons were unavailable for comment, the decision is seen as a fallout of a Jan 10 order by Lokpal, following complaints made in 2023 against the SAIL chairperson and two executive directors.
In one case, complaints made regarding hi-tech were not found to be lacking evidence, but in other two cases, which related to Venkatesh Infra Projects and Avon Steel Industries, a CBI probe has been ordered by Lokpal.
The complaint before the anti-graft agency, which was probed by the CVC and then referred to the steel ministry, had alleged that SAIL executives had favoured Venkatesh Infra in the sale of large quantities of steel within weeks of its incorporation. It is alleged that Venkatesh Infra, which is a trading company, sold the steel in the open market “for windfall profits and gains”, in connivance with the PSU executives.
In the case of Avon Steel, SAIL chairman & an exec director are accused of misusing their official position, resulting in a loss to the company. The allegation is that the company made windfall profits at the expense of the PSU.
In an exchange filing, SAIL said that its director (commercial) VS Chakravarthy and director (finance) AK Tulsiani, and four executive directors have been suspended. Meanwhile, NMDC said its director (commercial) V Suresh has been placed under suspension, although it is unclear what led to the decision in his case. The fate of SAIL CMD named in the complaint is, however, unclear as the Lokpal has not named the top-most executive.
While company spokespersons were unavailable for comment, the decision is seen as a fallout of a Jan 10 order by Lokpal, following complaints made in 2023 against the SAIL chairperson and two executive directors.
In one case, complaints made regarding hi-tech were not found to be lacking evidence, but in other two cases, which related to Venkatesh Infra Projects and Avon Steel Industries, a CBI probe has been ordered by Lokpal.
The complaint before the anti-graft agency, which was probed by the CVC and then referred to the steel ministry, had alleged that SAIL executives had favoured Venkatesh Infra in the sale of large quantities of steel within weeks of its incorporation. It is alleged that Venkatesh Infra, which is a trading company, sold the steel in the open market “for windfall profits and gains”, in connivance with the PSU executives.
In the case of Avon Steel, SAIL chairman & an exec director are accused of misusing their official position, resulting in a loss to the company. The allegation is that the company made windfall profits at the expense of the PSU.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
