The Ministry of Steel has suspended three senior officials at leading public sector undertakings Steel Authority of India Ltd (SAIL) and National Mineral Development Corp (NMDC) over an ongoing corruption investigation.
SAIL disclosed in a stock exchange filing that Commercial Director V.S. Chakravarthy and Finance Director A.K. Tulsiani have been suspended effective immediately per 19 January ministry letters. The company also suspended 26 below board level staffers under the ministry’s directions.
The unprecedented action stems from probes underway as per orders from the Lokpal anti-corruption ombudsman. Further details behind the suspensions at India’s largest steel maker were not immediately available.
SAIL Chairman Amarendu Prakash stated the company’s operations remain unaffected and it remains committed to the highest ethics standards despite the shakeup. However, the anti-graft investigation involving two key SAIL directors raises questions.
NMDC also confirmed suspensions but did not provide additional information. The rare corruption inquiries involving top PSU brass underline the Modi government’s commitment to cleaning up the public sector.