New Delhi, February 2026: The Steel Authority of India Limited (SAIL), India’s largest state-owned steel producer, is facing heightened scrutiny after the Central Bureau of Investigation (CBI) initiated a detailed probe into alleged irregularities in the sale of raw materials to private companies at prices significantly below market levels.
The investigation follows findings referred by the Lokpal, based on inputs from the Central Vigilance Commission (CVC), which flagged possible lapses in commercial decision-making that may have resulted in substantial financial losses to the public sector enterprise.
What the Allegations Say
According to officials familiar with the matter, the probe centres on transactions where select private firms allegedly received steel and raw materials from SAIL at discounted rates without adequate safeguards or transparent price discovery mechanisms. Preliminary estimates place the potential loss to SAIL between ₹263 crore and over ₹370 crore, though investigators are still assessing the final financial impact.
Companies named in the FIRs include Avon Steel Industries Private Limited and Venkatesh Infra Projects Private Limited, among others. The CBI is examining whether due process was followed in pricing, allocation, and execution of these sales.
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Role of Officials and Internal Oversight
Investigating agencies are also looking into the role of certain SAIL officials to determine whether procedural negligence or misuse of authority contributed to the alleged losses. The case has brought renewed focus on internal controls, risk management practices, and accountability within large public sector undertakings.
The matter gained momentum after concerns were raised by an internal whistleblower, whose complaint prompted regulatory attention and eventually led to the Lokpal’s intervention. Developments following the whistleblower’s disclosures, including administrative actions taken against him, have also come under public and institutional scrutiny.
Separate Steel Sector Investigations Add Pressure
The SAIL probe comes at a time when India’s steel sector is already under regulatory focus. In a separate development, the Competition Commission of India (CCI) has recently examined alleged cartelisation among major steel producers related to pricing and supply coordination. While the CCI case is distinct and unrelated to the SAIL pricing probe, it has intensified oversight across the industry.
SAIL’s Position
SAIL has stated that it is cooperating fully with investigative authorities and has reiterated its commitment to transparency and compliance with applicable laws and regulations. The company has not commented on the merits of the case, citing the ongoing nature of the investigation.
What Lies Ahead
As the CBI continues its inquiry, the case is expected to have broader implications for governance standards, commercial autonomy, and accountability frameworks within public sector enterprises. Any confirmed wrongdoing could lead to legal action, recovery proceedings, and policy changes in how PSU commodity sales are structured.
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