BJP Donor Firm Named in ₹400 Crore SAIL Steel Scam; CBI Launches Probe After Lokpal Order
A major alleged scam involving subsidised steel supplied by the Steel Authority of India Limited (SAIL) has come under investigation after the Central Bureau of Investigation (CBI) registered a case on the directions of the Lokpal. The case centres around APCO Infratech Pvt Ltd, a company that had earlier donated ₹30 crore to the Bharatiya Janata Party (BJP) through electoral bonds.
According to findings placed before the Lokpal and the Central Vigilance Commission (CVC), the scam involves the alleged illegal procurement and resale of steel worth over ₹400 crore under SAIL’s “Project MoU Scheme,” which is intended to supply steel at concessional rates for large infrastructure projects.
Allegations of Forged Documents and Shell Entity
The CBI’s First Information Report (FIR), filed in October 2024, alleges that APCO Infratech issued a fabricated work experience certificate to Venkatesh Infra Projects Pvt Ltd (VIPPL). VIPPL, which was incorporated just days before entering into a Memorandum of Understanding (MoU) with SAIL in October 2020, allegedly used this certificate to claim experience in multiple major infrastructure projects.
Subsequent verification by the National Highways Authority of India (NHAI) found that VIPPL had no involvement in the projects cited in the certificate. Despite this, the MoU was approved, allowing VIPPL to procure large quantities of subsidised steel, which investigators allege was later sold in the open market for profit.
Role of Officials Under Scrutiny
Investigative agencies have raised questions over the role of certain SAIL officials who cleared the MoU without conducting adequate verification. In its observations, the Lokpal stated that there appeared to be a lack of due diligence and noted that possible collusion between officials and private entities could not be ruled out.
Over 1.1 million tonnes of steel meant for genuine infrastructure development is alleged to have been diverted through this arrangement.
Electoral Bonds and Government Contracts
Records show that between 2020 and 2023, APCO Infratech purchased electoral bonds worth ₹30 crore, all of which were encashed by the BJP. During the same period, the company reportedly secured multiple infrastructure contracts from government agencies, a fact that has drawn further scrutiny amid the ongoing investigation.
Whistleblower’s Allegations
The case was brought to light by Rajiv Bhatia, a former marketing officer at SAIL, who flagged internal irregularities and later approached higher authorities. He was suspended in 2022 and subsequently retired prematurely. Notably, other officials suspended in connection with the matter were later reinstated.
SAIL’s Response and Ongoing Probe
SAIL has denied that any financial loss was incurred and has maintained that VIPPL was a legitimate entity. However, findings by the CVC and Lokpal reportedly contradict this position, citing forged documentation and procedural lapses.
The CBI has expanded its probe and is examining the involvement of other firms and officials linked to similar MoUs with SAIL.
Investigations are ongoing, and further developments are awaited.
(Except for the headline, this story has not been edited by Bharatiya News staff and is published from a syndicated feed.)
