CBI probe finds company that donated crores to BJP caused massive losses to SAIL
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It has been found in the probe by the Central Bureau of Investigation (CBI) and the Central Vigilance Commission (CVC) that a company connected to the Bharatiya Janata Party (BJP) was central to a controversial steel supply deal that caused substantial losses to the public sector Steel Authority of India Limited (SAIL), The Wire has reported.
APCO Infratech Private Limited, a major electoral bond donor to the BJP, issued a certificate in favour of Venkatesh Infra Projects Private Limited (VIPPL), a newly incorporated firm with no prior construction experience. It has been found in the CVC's preliminary inquiry and confirmed in the FIR filed by the CBI in October 2024 that this certificate enabled VIPPL to obtain a contract with SAIL just eight days after the company was formed in October 2020.
It has been found in the Election Commission’s disclosures that APCO bought electoral bonds worth Rs 30 crore between January 2020 and October 2023—all of which were encashed by the BJP.
The CVC and CBI found that the certificate falsely claimed VIPPL was working on 11 infrastructure projects with APCO. It has been found in communication with the National Highways Authority of India (NHAI) that VIPPL was not involved in any of these projects. Despite this, SAIL approved VIPPL’s request to procure 150,000 metric tonnes of steel per year at discounted prices.
It has been found in the Lokpal’s January 2024 order that SAIL officials did not conduct any verification of the company’s eligibility, allowing the procurement scheme to be misused. VIPPL procured nearly 124,000 metric tonnes of steel—mostly under the names of other firms—and allegedly resold it at market rates, while purchasing it at lower prices intended for construction companies under SAIL’s loan-linked pricing scheme.
Complaints allege that more than 100 companies exploited this pricing mechanism, leading to an estimated loss of over Rs 400 crore to SAIL. The CBI FIR names SAIL officials, APCO executives, and VIPPL representatives under charges of criminal conspiracy, cheating, and corruption.
APCO later admitted to a long-standing relationship with VIPPL’s promoter and claimed that the work orders cited in the certificate were issued to a predecessor company. However, it failed to provide documentation. SAIL’s Chief Vigilance Officer concluded that APCO had misrepresented facts and played a key role in enabling VIPPL’s entry into the scheme.
The Wire reports that the matter came to light after Rajiv Bhatia, then general manager in SAIL’s marketing division, flagged irregularities in November 2022. He was suspended shortly after and remained under suspension for ten months. He later filed complaints with the Prime Minister’s Office and other oversight bodies.
It has been found in multiple complaints submitted to the Lokpal that at least 43 companies exploited SAIL’s special pricing structure intended for genuine construction firms. The Lokpal has called for a thorough investigation, which is now ongoing.
SAIL has denied any wrongdoing and claims VIPPL was a legitimate customer, but evidence collected by the CBI and the CVC points to systemic manipulation in collusion with SAIL officials.
