Jagdamba Steels to face legal action for supplying low quality rods- rods in the market to be recalled

3 years ago

Jagdamba Steels to face legal action for supplying low quality rods- rods in the market to be recalled

The government has stopped the sale and distribution of iron rods produced by Jagdamba Steel under Shankar Group and initiated legal action.

The Nepal Department of Quality and Measurement has taken action after finding that Jagdamba Steels, which has been misleading the consumers by claiming to be the number one quality product in Nepal, is now cheating the consumers by selling low quality steel bars.

 The department had written a letter of explanation to the company on Friday banning the sale and distribution of '16mm TMT bar' steel bars produced by Jagdamba.

As a precautionary measure, the department has decided to withhold permission at a size of 16 mm and scrap (destroy) about 300 tons of substandard iron rods produced by the industry in the presence of the department's representative.

As per the decision of the department, all the rods that went to the market of Jagdamba will have to be returned.

The department has taken action after the samples of iron bars produced by the Jagdamba Steels Industry were collected and tested in the laboratory of the department but did not meet the specified quality standards.

According to the sample compiled, Jagdamba Steel has set a maximum of 0.35 per cent of the carbon content in its product which should be 0.30 per cent and 0.060 per cent of the sulfur content which should be 0.055 per cent.

The department has stated that legal action has been taken in accordance with the Nepal Quality Certificate Act-2037 BS and Rule (16) of the Rules, 2040 BS as the rod of the industry was found to be of low quality.

Director General of the Department, Bishwa Babu Pudasaini, said that the sale of substandard iron rods should be stopped after it was found that Jagdamba had neglected the quality by using more chemicals than the standard while producing them.

He said that such shortcomings were found in the laboratory after receiving complaints from consumers about the quality. He said that the sale was stopped as it did not meet the standards.

He informed that instructions have been given to withdraw the entire batch from the market.