Police say an organised iron scrap theft racket operated inside Bhilai Steel Plant for months, with more arrests likely.
July 10, 2026: Two employees of the Bhilai Steel Plant (BSP), including a general manager, have been arrested in Chhattisgarh’s Durg district for their alleged involvement in an organised iron scrap theft racket. The arrested officials were identified as Himanshu Bhushan Malik (54), General Manager at SMS-3, and Manoj Kumar Devangan (58), an Engineering Associate at SMS-3. With their arrest, the total number of accused held in the case has risen to 15. Police said the racket had allegedly been operating inside the steel plant for the past four to five months.
According to Durg Superintendent of Police Vijay Agarwal, the investigation revealed that BSP’s iron scrap was systematically stolen during the transportation of flue dust. The operation allegedly involved moving scrap out of the plant concealed within flue dust consignments. The case came to light on May 26, when police raided AK Traders in Bhilai’s Hathkhoj Industrial Area and recovered large quantities of iron plates, beams and metal pieces hidden inside flue dust. The stolen material was allegedly separated, stored and later sold for financial gain.
Police seized nearly 250 tonnes of iron scrap valued at around ₹90 lakh, along with trucks, Hyva vehicles, a JCB, a hydra crane and machines allegedly used to separate the scrap from flue dust. The total value of the seized material, vehicles and machinery has been estimated at ₹3.22 crore. Investigators said evidence collected during the probe linked the two BSP employees to the racket, and further arrests are likely as teams continue to investigate the wider network involved in the alleged theft.
