RAIPUR: In what could have been one of the largest cyber frauds targeting a public sector enterprise, NMDC Steel Limited (NSL), a subsidiary of the Navratna company National Mineral Development Corporation, narrowly escaped losing Rs 120 crore to fraudsters posing as foreign vendors.
The incident occurred at NSL’s integrated steel plant in Nagarnar, Bastar. The plant, which sources both indigenous and imported coking coal, including from Australia, for its blast furnace operations, had been corresponding with what appeared to be a legitimate US-based supplier.
According to Jagdalpur Superintendent of Police Shalabh Sinha, unidentified fraudsters spoofed the official email ID of the US vendor and initiated a fake correspondence, eventually sending altered banking details to NSL for payment. Acting on these communications, NSL processed a transfer of Rs 120 crore through a regional branch of the State Bank of India (SBI) to the bank’s overseas branch in the United States.
However, the overseas SBI branch grew suspicious of the transaction and put the payment on hold. “The branch immediately alerted us. Upon verification with the actual vendor, we discovered that no such correspondence or deal had taken place,” said Rafique Ahmed, spokesperson for the Nagarnar plant.
SP Sinha confirmed that the amount remains secure. “The funds are safe and will be returned to NMDC Steel Limited. The investigation has been initiated, and preliminary findings suggest the fraud originated abroad,” he said.
Company officials noted that prompt action by both NSL staff and the bank prevented any financial loss. “We detected discrepancies early, checked with our vendor, and stopped the transaction on time,” Ahmed added.
A case has been registered with the Jagdalpur Cyber Police Station, which is coordinating with national and international authorities to trace the culprits.
NSL’s integrated steel plant, spread across 1,980 acres and built at an estimated cost of Rs 24,000 crore, is located about 300 km south of Raipur. Last year, it achieved a key production milestone, surpassing 2 million tonnes of hot metal. The plant produces hot rolled coils, sheets, plates, and hot metal, and operates on a zero-discharge environmental model.