Two employees of the Bhilai Steel Plant (BSP), including a general manager, were arrested in Chhattisgarh’s Durg district for their alleged involvement in an organised iron scrap theft racket that police said had been operating inside the plant for the past four to five months. With the latest arrests, the total number of people arrested in the case has risen to 15.

The arrested BSP employees were identified as Himanshu Bhushan Malik (54), general manager at SMS-3, and Manoj Kumar Devangan (58), an engineering associate at SMS-3.
“Investigation revealed that iron scrap belonging to BSP was being systematically stolen during the transportation of flue dust. It was an organised operation and we are investigating the role of every person involved in the movement and handling of the material,” Durg superintendent of police Vijay Agarwal said.
More arrests could follow in the next few days as the investigation into the alleged network continues, an officer said.
The case surfaced on May 26 after Durg police received information about the suspected illegal storage of BSP scrap at AK Traders in Aklordih Khadanpara in Bhilai’s Hathkhoj Industrial Area.
A police team searched the premises and found iron plates, beams and cut metal pieces mixed with flue dust in several Hyva trucks and other vehicles. Large quantities of iron scrap were also found stored in separate heaps on the premises.
{{/usCountry}}A police team searched the premises and found iron plates, beams and cut metal pieces mixed with flue dust in several Hyva trucks and other vehicles. Large quantities of iron scrap were also found stored in separate heaps on the premises.
{{/usCountry}}According to police officers, the accused allegedly used the transportation of flue dust from the steel plant to move iron scrap out of the BSP premises. The scrap was later separated from the dust, stored at AK Traders and allegedly sold for financial gain.
Police said the alleged racket had been operating for the past four to five months in a planned manner.
During the search, around 250 tonnes of iron plates, beams and other cut iron material, estimated to be worth ₹90 lakh, were seized. Police also confiscated several trucks and Hyva vehicles, a JCB, a hydra crane, a chain-mounted machine and five machines allegedly used to filter the flue dust and separate the iron material.
The total value of the seized scrap, vehicles and machinery has been estimated at around ₹3.22 crore.
Thirteen people had been arrested before the two BSP employees were taken into custody. Police said further examination of evidence and the alleged movement of material led investigators to the two BSP employees.
“Evidence collected during the investigation indicated the involvement of the two BSP employees, following which they were arrested. The investigation is still underway and more people may be arrested in the next few days if their involvement is established,” Agarwal said.
Police said teams are searching for other suspects and investigating the wider network allegedly involved in the theft and illegal disposal of BSP scrap.