Tata Steel Faces Fraud Investigation In UK

At least nine Tata employees were suspended in connection to the inquiry.

(Andrew Matthews / PA via AP)
(Andrew Matthews / PA via AP)

U.K. authorities are reportedly investigating potential fraud by Indian steel giant Tata.

The Telegraph reported Friday that the government's Serious Fraud Office opened a probe into claims that Tata employees falsely labeled the composition of steel products made at a facility in northern England.

The company reportedly referred itself to investigators following an internal audit. The inquiry involves documents tied to hundreds of companies — including aerospace company BAE and luxury automaker Rolls-Royce — but there is no indication that the allegations could present a safety issue.

At least nine Tata employees were suspended in connection to the inquiry. The Telegraph also reported that Tata faces a trade investigation, but that it is unclear whether the probes are related.

(Andrew Matthews / PA via AP)(Andrew Matthews / PA via AP)

The report comes just days after Tata announced plans to sell of the entirety of its U.K. operations, which placed thousands of jobs in jeopardy and created a political firestorm in the country.

The BBC reported Friday that a deal to sell Tata's Scunthorpe steel plant — which was put on sale two years ago — could be imminent.

Investment firm Greybull Capital reportedly aims to invest more than $564 million in the northeastern England facility in hopes of returning it to profitability within two years.

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