Tata Steel Ltd involved in criminal investigation held by UK Serious Fraud Office

Adverse Media, Fraud

Tata Steel Ltd involved in criminal investigation.  The UK Serious Fraud Office investigated  Tata Steel Ltd operations. It alleged for inappropriate testing and certificate procedure. The police officers examined the charges implied on the company. Hence, fake certificates presented at South-Yokshire based specialty steel business.

Since, the falsified trading standard documents have impacted 500 customers, including BAE and Rolls-Royce, the media report said, citing unidentified sources. The Rolls-Royce declared that they were aware about the issue. Therefore, Serious Fraud office did’nt contact Rolls-Royce. They did’nt comment on the investigation.

According to Tata Steel Ltd, the inquiry was a result of the company “proactively notifying” the UK Serious Fraud Office about the made-up test certificates. Hence, the company, which is considering an exit from the UK market by putting all of its operations there on sale, said that it referred the matter to the fraud office after an internal audit in 2015 revealed inappropriate testing and certification methods were used at its speciality steels unit in South Yorkshire.

After the incident, the company said that it had suspended “a number of speciality steels personnel”. The unit produces 2.25 lakh tonnes of steel, which accounts for around 3% of the total output of Tata Steel Europe, the holding company of Tata Steel’s UK and Netherlands operations.Hence, the speciality steels business has annual turnover of 275 million pounds.

Additionally, at the time of investigation the practices immediately stopped.The technical team carried out a detailed investigation.  The independent experts verified the conclusions.

Final Word

“The investigation found that the steel affected and supplied was well within
safety margins. The company quarantined the affected stock. It assessed, transferred and scrapped to another order.” Tata Steel did’nt received recalls of material from 600 customers. No customer has brought a legal claim to date.

UK Serious Fraud office is the regulatory body in UK. It investigated the company in detail. The company involved in fake certificate process.