Lok Sabha Question No. 103 (STARRED), answered on 2020-02-10
Subject: Financial Transactions in SAIL
Ministry: STEEL
Asked by: Sushil Kumar Singh

## LOK SABHA STARRED QUESTION NO.*103 FOR ANSWER ON 10/02/2020

## FINANCIAL TRANSACTIONS IN SAIL

- *103.  SHRI SUSHIL KUMAR SINGH:

Will the Minister of STEEL be pleased to state:

- (a) whether there was a mechanism in place to ensure the accountability of the Finance  Department  of  Steel  Authority  of  India  Limited  (SAIL)  regarding  the transferring/diverting the reserves, surplus, cash and bank funds from one bank to another before the detailed Department of Public Enterprises (DPE) guidelines dated 8.5.2017  on  investment  of  Surplus  Funds  by  Central  Public  Sector  Enterprises (CPSEs) came into force;
- (b) if so, the details of such guidelines between the years 2011 and 2017;
- (c) the  details  of  the  transfer  of  such  funds  from  one  bank  to  another  by  SAIL separately from the year 2011, instance-wise;
- (d) the details of the instances in which the funds were transferred from a Public Sector Bank to Private Sector Bank by SAIL, instance-wise; and
- (e) whether  there  has  been  any  audit  objection  raised  or  internal  enquiry conducted against any officials for diverting the funds to different banks for quid pro quo and if so, the details thereof?

## ANSWER

(SHRI DHARMENDRA PRADHAN)

THE MINISTER OF STEEL

(a)to(e):  A Statement is laid on the Table of the Lok Sabha.

********

STATEMENT REFERRED TO IN  REPLY  TO  PARTS  (A)  TO  (E)  OF  THE  LOK SABHA STARRED QUESTION NO. *103 FOR ANSWER ON 10/02/2020 ASKED BY  SHRI  SUSHIL  KUMAR  SINGH,  MEMBER  OF  PARLIAMENT  REGARDING 'FINANCIAL TRANSACTIONS IN SAIL' (a)&(b): Yes, Sir. Steel Authority of India Limited (SAIL) has informed that all along it has been adhering to all such guidelines/amendments/clarifications on 'Investment of Surplus Funds by Central Public Sector Enterprises (CPSEs)' issued by DPE from time to time.  The first such Guideline was notified vide O.M. No.DPE/14(19)/90-Fin dated 03.01.1992 and subsequently, DPE issued amendments / clarifications from time to time with the prevailing directions prescribed vide DPE OM No.18 (1)/2012Fin dated 8 th May, 2017.  Further, as per the policy/methodology approved by SAIL Board, the investment of surplus fund was done at the highest rate of interest offered by the participating banks.  The outstanding position of deposits was also informed to SAIL Board on a regular basis. (c)&(d): SAIL had dealings with the Scheduled Commercial Banks listed in the 2 nd Schedule of Reserve Bank of India Act for conducting financial transactions. SAIL had received all its funds and made all the payments through State Bank of India (SBI).  Therefore,  whereever  the  funds  were  transferred  for  investment,  the  same were transferred from SBI. Instance-wise details for FY 2011-12 to 2014-15 of such transfers are placed at Annexure IA to ID . The  last  investment  was  made  by  SAIL  in  March,  2015  which  matured  in March,  2016.  Thereafter,  no  investment  was  made  as  surplus  funds  were  not available with SAIL for investment. (e)

SAIL has further informed that there have been no adverse comments raised by  audit  (CAG/Statutory  Auditors),  therefore,  no  internal  inquiry  conducted  against any officials for diverting the funds to different banks for quid pro quo .

- ********

## Annexure-IA

## Surplus Cash Deposits placed with Banks during 2011-12

| Sl. No.   | Name of the Bank   | Date of Deposit   | Amount Rs. crore   |
|-----------|--------------------|-------------------|--------------------|

## PUBLIC SECTOR BANKS

| 1   | IDBI Bank                   | 27.05.2011   |   900 |
|-----|-----------------------------|--------------|-------|
| 2   | State Bank of India         | 16.11.2011   |  1400 |
| 3   | Bank of Baroda              | 04.01.2012   |   900 |
| 4   | Canara Bank                 | 06.01.2012   |  2000 |
| 5   | State Bank of Hyderabad     | 28.01.2012   |   600 |
| 6   | Vijaya Bank                 | 23.01.2012   |   250 |
| 7   | Vijaya Bank                 | 31.01.2012   |   400 |
| 8   | Vijaya Bank                 | 02.02.2012   |   100 |
| 9   | IDBI Bank                   | 14.02.2012   |   250 |
| 10  | Corporation Bank            | 11.02.2012   |   250 |
| 11  | Allahabad Bank              | 21.02.2012   |   100 |
| 12  | Allahabad Bank              | 20.03.2012   |   300 |
| 13  | Union Bank of India         | 23.02.2012   |    50 |
| 14  | Vijaya Bank                 | 24.02.2012   |   125 |
| 15  | Vijaya Bank                 | 29.02.2012   |   200 |
| 16  | Vijaya Bank                 | 05.03.2012   |   100 |
| 17  | Canara Bank                 | 12.03.2012   |   900 |
| 18  | IDBI Bank                   | 21.03.2012   |   400 |
| 19  | Canara Bank                 | 22.03.2012   |  2000 |
| 20  | Central Bank of India       | 26.03.2012   |   200 |
| 21  | State Bank of Travancore    | 27.03.2012   |  1000 |
| 22  | Corporation Bank            | 28.03.2012   |   300 |
|     | TOTAL WITH PUB. SEC. BANK's |              | 12725 |

## PRIVATE SECTOR BANKS

| 1   | Yes Bank                    | 24.11.2011   |   100 |
|-----|-----------------------------|--------------|-------|
| 2   | Indusind Bank               | 22.03.2012   |   100 |
| 3   | Jammu & Kashmir Bank        | 29.03.2012   |   100 |
|     | TOTAL WITH PVT. SEC. BANK's |              |   300 |

| %with Public Sector Banks   | 98%   |
|-----------------------------|-------|
| %with Private Sector Banks  | 2%    |

## Annexure-IB

## Surplus Cash Deposits placed with Banks during 2012-13

| Sl.   | Name of the Bank   | Date of Deposit   | Amount    |
|-------|--------------------|-------------------|-----------|
| No.   |                    |                   | Rs. crore |

## PUBLIC SECTOR BANKS

| 1   | State Bank of India         | 09.04.2012   |   105 |
|-----|-----------------------------|--------------|-------|
| 2   | State Bank of India         | 10.04.2012   |    35 |
| 3   | State Bank of India         | 11.04.2012   |    90 |
| 4   | State Bank of India         | 16.04.2012   |    50 |
| 5   | State Bank of India         | 20.04.2012   |    20 |
| 6   | State Bank of India         | 26.05.2012   |    60 |
| 7   | State Bank of India         | 28.05.2012   |    60 |
| 8   | State Bank of India         | 29.05.2012   |   155 |
| 9   | State Bank of India         | 30.08.2012   |   200 |
| 10  | State Bank of India         | 23.01.2013   |   100 |
| 11  | State Bank of India         | 24.01.2013   |   100 |
| 12  | State Bank of India         | 28.01.2013   |   100 |
| 13  | State Bank of India         | 30.01.2013   |   100 |
| 14  | State Bank of India         | 31.01.2013   |   400 |
| 15  | Canara Bank                 | 22.03.2013   |   500 |
| 16  | Canara Bank                 | 22.03.2013   |  1400 |
| 17  | Canara Bank                 | 23.03.2013   |   500 |
| 18  | Bank of Baroda              | 28.03.2013   |  1000 |
|     | TOTAL WITH PUB. SEC. BANK's |              |  4975 |

| %with Public Sector Banks   | 100%   |
|-----------------------------|--------|
| %with Private Sector Banks  | 0%     |

## Annexure-IC

## Surplus cash Deposits placed with Banks during 2013-14

| Sl.   | Name of the Bank   | Date of Deposit   | Amount    |
|-------|--------------------|-------------------|-----------|
| No.   |                    |                   | Rs. crore |

## PUBLIC SECTOR BANKS

| 1   | State Bank of India   | 31.08.2013   |   500 |
|-----|-----------------------|--------------|-------|
| 2   | UCO Bank              | 06.09.2013   |  1050 |
| 3   | Vijaya Bank           | 12.09.2013   |   500 |
| 4   | Punjab and Sind Bank  | 12.09.2013   |  1000 |
| 5   | Vijaya Bank           | 13.09.2013   |   500 |
| 6   | Vijaya Bank           | 16.09.2013   |   550 |
| 7   | IDBI Bank             | 21.03.2014   |   500 |
| 8   | IDBI Bank             | 21.03.2014   |   500 |
| 9   | IDBI Bank             | 21.03.2014   |   500 |
| 10  | Punjab and Sind Bank  | 21.03.2014   |   500 |
| 11  | Punjab and Sind Bank  | 25.03.2014   |   500 |
|     | TOTAL WITH PUB. SEC.  |              |  6600 |

| %with Public Sector Banks   | 100%   |
|-----------------------------|--------|
| %with Private Sector Banks  | 0%     |

Annexure-ID Surplus Cash Deposits placed with Banks during 2014-15

| Sl.   | Name of the Bank   | Date of Deposit   | Amount    |
|-------|--------------------|-------------------|-----------|
| No.   |                    |                   | Rs. crore |

## PUBLIC SECTOR BANKS

| 1                           | IDBI Bank                   | 18.03.2015                  |   500 |
|-----------------------------|-----------------------------|-----------------------------|-------|
| 2                           | IDBI Bank                   | 19.03.2015                  |   500 |
| 3                           | IDBI Bank                   | 20.03.2015                  |   500 |
| 4                           | IDBI Bank                   | 21.03.2015                  |   500 |
| TOTAL WITH PUB. SEC. BANK's | TOTAL WITH PUB. SEC. BANK's | TOTAL WITH PUB. SEC. BANK's |  2000 |

| %with Public Sector Banks   | 100%   |
|-----------------------------|--------|
| %with Private Sector Banks  | 0%     |