The Central Bureau of Investigation (CBI) has lodged a case against Avon Steel Industries Ltd and unknown officials of the Steel Authority of India Limited (SAIL) for their alleged involvement in a massive scam that has caused a reported loss of ₹370 crore to the state-run company.
According to the CBI’s FIR, Avon Steel allegedly entered into fraudulent dealings with SAIL, manipulating agreements to gain undue financial benefits. The case was filed following a complaint by SAIL itself, which reported irregularities in its business transactions with the private firm.
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Alleged Modus Operandi
Preliminary findings suggest that the accused may have exploited the terms of supply contracts and misrepresented financial statements to siphon off funds. The manipulation reportedly continued for years, gradually piling up losses to the tune of hundreds of crores. The CBI believes that certain insiders in SAIL could have played a role in facilitating these transactions.
Company’s Reported Losses
Avon Steel, in its latest filings, has reported financial stress and losses, raising further suspicion about its operations. The mismatch between declared performance and alleged fraud has added to the gravity of the case, with investigators now probing whether the company’s reported losses are linked to its dealings with SAIL.
Wider Implications of the Scam
The case has raised concerns over the oversight and internal checks in public sector undertakings like SAIL. With a loss of ₹370 crore already reported, authorities fear that the scam may have wider implications if deeper collusion is established. The investigation could also lead to accountability of higher officials within SAIL if their involvement is proven.
CBI’s Next Steps
The CBI has said that it will question Avon Steel’s top management and SAIL officials who handled the contracts in question. Searches, seizures of documents, and forensic audits of accounts are expected in the coming weeks as investigators attempt to unravel the full scale of the fraud.
The case is being closely monitored as it involves not just a major private player but also one of India’s largest public sector undertakings.
