Avon Steel included in widening probe into SAIL alleged sales fraud

NEW DELHI: The Central Bureau of Investigation (CBI) has extended its investigation into suspected irregularities in sales of raw material by the Steel Authority of India Limited (SAIL), targeting Avon Steel Industries Private Limited. The case is a follow-up to previous findings against Venkatesh Infra Projects, where suspicious sales practices allegedly resulted in huge losses to the government-run steelmaker.

According to the CBI’s first information report, filed on July 25, 2025, SAIL officials are accused of colluding with Avon Steel to supply raw materials at rates significantly lower than those charged to other buyers. The agency has pegged the potential loss to SAIL between Rs 263 crore and Rs 370 crore.

India's Lokpal, which has been keeping a watch on the case, has come down strongly against SAIL's internal mechanisms. Commenting on its previous observations, the anti-graft agency stated that the failure exceeded negligence and the possibility of deliberate price manipulation by select private players could not be ruled out. The case is being investigated under Prevention of Corruption Act provisions and charges of conspiracy under the Indian Penal Code. The names of serving officials were not made public under Lokpal regulations. However, 17 SAIL officials were listed in documents filed with the Union steel ministry, 13 of whom were suspended last year. Four others had retired prior to action. The probe also raises the issue of the tenure of ex-SAIL chairperson Soma Mandal, who resigned in April 2023 and is currently a member of the Public Enterprises Selection Board. She has contested the CBI investigation against her in the Delhi High Court, which had granted a partial stay last year. The issue is listed for hearing on September 25, 2025. While the review is ongoing, the steel ministry has engaged an outside agency to conduct an overall assessment of the sales practices of SAIL. The periodic controversies—first Venkatesh Infra, now Avon Steel—have also raised larger questions about whether loopholes in the system within India's biggest steel maker have been taken advantage of at the expense of public money.