Raipur. The Central Bureau of Investigation (CBI) will now probe the alleged theft and illegal removal of iron scrap from the Bhilai Steel Plant (BSP) in Chhattisgarh. The state government issued a notification on September 25, 2026, transferring the investigation to the CBI. The case is linked to Crime No. 277/2026 registered at Purani Bhilai police station in Durg district. The CBI will investigate the alleged scrap theft network, the role of people involved, financial transactions and electronic evidence. A total of 21 accused have been arrested in the case so far.
The state government has given consent to the CBI under Section 6 of the Delhi Special Police Establishment Act, 1946, to exercise its powers and jurisdiction across Chhattisgarh for the investigation. The case has been registered under several sections of the Bharatiya Nyaya Sanhita. The investigation will not be limited to the alleged removal of scrap from the plant. It will also examine where the material allegedly stolen from BSP was taken, which individuals and companies were involved and how the related financial transactions were carried out.
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Case surfaced on May 26
The case came to light on May 26 after police received information that some vehicles transporting flue dust from BSP were allegedly also being used to carry iron scrap. Police subsequently seized vehicles and machinery and began investigating the movement of the material. A raid was also conducted at the premises of A.K. Traders in the Hathkhoj area of Bhilai, where around 250 tonnes of iron plates, beams, cuttings and other scrap were allegedly recovered.
The seized iron material was estimated to be worth around ₹90 lakh, while the combined value of the recovered material, vehicles and machinery was estimated at approximately ₹3.22 crore. Investigators then began examining how the material was allegedly moved from inside the plant and transported outside.
Scrap allegedly moved under cover of flue dust
The investigation alleges that vehicles authorised to transport flue dust from BSP were allegedly used to remove iron scrap from the plant. An agreement for transporting flue dust existed between the Blast Furnace-2 department and RDK Industries, while Himanshu Brothers also had a work order related to transportation of the material.
According to investigators, scrap was allegedly loaded into vehicles at the SMS-III yard. The material was then allegedly concealed beneath or on top of flue dust before the vehicles left the plant. After reaching outside, the scrap was allegedly unloaded and stored at the A.K. Traders premises. Investigators also examined the role of transporters, drivers and people associated with the scrap business.
Alleged tampering with VTS
The alleged manipulation of the Vehicle Tracking System (VTS) has also emerged as an important part of the investigation. Vehicles transporting flue dust were fitted with tracking devices. Investigators alleged that in some cases, the devices were removed after loading and weighbridge formalities had been completed. This meant that the vehicles’ subsequent GPS movements were allegedly not recorded.
Investigators also examined the possibility that vehicle registration numbers were allegedly altered or used on other vehicles. The probe is looking into whether such methods were used to conceal the movement of scrap and evade monitoring.
Probe expanded from plant employees to private companies
As the investigation progressed, the alleged role of BSP employees came under scrutiny and arrests followed. On July 10, the general manager of SMS-3 and an engineering associate were arrested. At that stage, the number of arrests in the case had reached 15. Investigators alleged that the network had been operating for several months and that scrap was being removed from the plant through vehicles carrying flue dust.
In September, the investigation expanded to private industrial units. The managing director and a director of Raipur Power and Steel Limited, Rasmada, were arrested. Following these arrests, the total number of accused arrested in the case reached 21. Investigators alleged that scrap removed from BSP was being supplied to private industrial units, where it was subsequently used as raw material.
Bank accounts and digital records examined
The police investigation also examined bank accounts linked to the accused, cash deposits and other financial transactions. Call Detail Records (CDRs), Internet Protocol Detail Records (IPDRs), subscriber details and other electronic evidence were also collected.
These records were examined to trace communications between transporters, drivers, plant employees and other people allegedly connected with the movement of the scrap. Vehicle registration records, witness statements, forensic examination of the recovered material and documents related to the seized vehicles and machinery were also part of the investigation.
The CBI will now conduct a detailed probe into the entire case. It will examine how the alleged scrap removal operation was conducted, the role of individuals at different levels, the alleged manipulation of VTS and vehicle records, and the industrial units that allegedly received the recovered material. The financial and electronic trails will also be analysed to identify any other people or entities potentially connected with the alleged network. The case remains under investigation, and the allegations will be established only after the investigation is completed.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
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