The Enforcement Directorate (ED) has provisionally attached assets worth ₹31.70 crore in the Chhattisgarh DMF funds case and filed a supplementary prosecution complaint against 17 people. Investigators allege that a network of public servants and intermediaries diverted mining welfare funds through inflated procurement contracts and illegal commissions of 25% to 50%. The money laundering probe involves suspected misuse of funds intended for mining-affected communities.
ED Attaches ₹31.70 Crore Assets in Chhattisgarh DMF Funds Case, Names 17 People
The Enforcement Directorate has attached assets worth ₹31.70 crore and filed a supplementary prosecution complaint against 17 people in connection with the alleged misappropriation of District Mineral Foundation funds in Chhattisgarh.
The Enforcement Directorate (ED) has added more fuel to the Chhattisgarh DMF funds case after it provisionally attached assets worth ₹31.70 crore and named 17 persons in a supplementary prosecution complaint in connection with alleged financial irregularities involving mining welfare funds.
Citing officials, the Press Trust of India (PTI) said the investigation concerns an alleged organised network of public servants, agents and liaisoners accused of manipulating project allocations, inflating procurement costs and pocketing illegal commissions.
The alleged financial irregularities took place during the previous Congress government under former Chief Minister Bhupesh Baghel, and investigators are probing the suspected diversion of funds meant for mining-affected communities.
ED Action Under the Prevention of Money Laundering Act
The ED’s Raipur Zonal Office issued a provisional attachment order under the Prevention of Money Laundering Act (PMLA), 2002 on October 29, 2026.
On October 30, the agency filed a supplementary prosecution complaint in the Special Court under the Act in Raipur against Satpal Singh Chabda, Mandip Chawla and 15 others.
The latest action comes after a money laundering probe was launched based on a first information report (FIR) filed by the Chhattisgarh Anti-Corruption Bureau (ACB) and Economic Offences Wing (EOW) in Raipur.
The original FIR was registered under the Prevention of Corruption Act and Indian Penal Code sections, while later investigations included other FIRs registered by Chhattisgarh Police in Kanker district.
The agency also investigated complaints registered with the Anti-Corruption Bureau and the Economic Offences Wing as part of a wider probe into the alleged financial network.
How the Alleged DMF Funds Diversion Operated
District Mineral Foundation (DMF) trusts are funded by the contribution of the mining lease holders and function in the mining districts for welfare and development activities for the benefit of persons affected by mining.
The ED alleged that the syndicate manipulated the allocation and utilisation of DMF funds by favouring supply-side projects with inflated procurement costs and huge illegal commissions.
The agency said agents and liaisons charged commissions of 25 to 50 per cent of the base value of purchase orders placed with entities having rate contracts.
It is alleged that these commissions were received through cash transactions and banking channels and were routed through multiple entities and accounts to cover their tracks.
The ED also alleged that huge amounts of the collected money were paid to public servants and influential persons for allotment of the DMF-funded projects, issuance of purchase orders and release of payments.
Investigators also found similar alleged commission arrangements involving procurement through the Chhattisgarh Rajya Beej Evam Krishi Vikas Nigam, known as Beej Nigam, with the use of non-DMF funds.
Also Read: Thane Court Ruling Puts Yeoor Gaushala Demolition in Focus
Satpal Singh Chabda and Other Arrests
The ED has identified Satpal Singh Chabda, arrested on September 1, as one of the key liaison officers and financial coordinators of the alleged network.
The agency claims Chabda helped some vendors to secure supply-focused projects and also helped them to get purchase orders, release of payments, and to collect and distribute illegal commissions.
In the latest action, the agency estimated proceeds of crime linked to the accused to be about ₹35 crore and attached assets worth ₹31.70 crore against it.
According to information shared by the ED with PTI, four people, including Chhattisgarh cadre Indian Administrative Service (IAS) officer Ranu Sahu, have been arrested so far in connection with the investigation.
The agency also told PTI that cumulatively around Rs 50 crore worth of assets have been attached in the case, indicating the wider financial angle of its ongoing investigation.
Investigation Continues Into Alleged Financial Irregularities
The additional complaint against 17 persons and the latest provisional attachment are part of ED’s ongoing probe into alleged corruption in Chhattisgarh’s mining welfare funds.
The investigation will be conducted through proceedings before the Special Court at Raipur, where the allegations and evidence produced by the agency will be tested under applicable legal procedures.
The case raises questions about financial oversight, procurement transparency and accountability in institutions meant to deliver development benefits to mining-affected communities, Sprouts News says.
The allegations are still under judicial examination, and the legal responsibility of the named individuals will be decided in the due course of proceedings.
