The ED attached assets worth ₹31 crore and ₹70 lakh and charged 17 people in the Chhattisgarh DMF case. The action deepens scrutiny of alleged inflated contracts and commissions under the previous Congress government.The ED's Raipur Zonal Office issued a provisional attachment order on October 29 under the Prevention of Money Laundering Act, 2002..
Raipur,Oct 31, 2026 18:32 ISTThe Enforcement Directorate (ED) has provisionally attached assets worth Rs 31.70 crore and filed a supplementary prosecution complaint against 17 people in connection with the alleged misappropriation of District Mineral Foundation (DMF) funds in Chhattisgarh, news agency PTI reported, citing officials.The agency alleged that an organised group of public servants, agents and liaisoners siphoned off DMF funds by manipulating the allocation of works, inflating procurement costs and collecting illegal commissions. The alleged scam took place during the previous Congress government led by Bhupesh Baghel.The ED's Raipur Zonal Office issued a provisional attachment order on October 29 under the Prevention of Money Laundering Act, 2002.It filed the supplementary prosecution complaint before the Special Court under the Act in Raipur on October 30, the agency said in a statement.
The complaint names Satpal Singh Chabda, Mandip Chawla and 15 others. The money-laundering investigation began on the basis of a first information report registered by the Chhattisgarh Anti-Corruption Bureau and Economic Offences Wing in Raipur under the Prevention of Corruption Act and the Indian Penal Code.The agency later included in its investigation FIRs registered by the Chhattisgarh Police in Kanker district and the Anti-Corruption Bureau and Economic Offences Wing.
DMF is a trust funded through contributions from mining leaseholders. Such trusts have been established in districts across Chhattisgarh to carry out welfare and development work for people and areas affected by mining operations."The syndicate allegedly manipulated the allocation and utilisation of DMF funds by favouring supply-oriented works involving inflated procurement costs and payment of substantial illegal commissions.
Agents and liaisoners collected commissions ranging from 25 to 50 per cent of the base value of purchase orders issued to entities holding rate contracts," the ED said, according to PTI.The commissions were allegedly collected in cash and through banking channels before being routed through various entities and accounts to conceal their origins.A substantial share was allegedly passed on to public servants and other influential people in exchange for the allocation of DMF-funded works, issuance of purchase orders and release of payments, the agency said.The investigation also found that agents allegedly collected similar commissions for procurement carried out through the Chhattisgarh Rajya Beej Evam Krishi Vikas Nigam, or Beej Nigam, using funds other than those of the DMF.The ED identified Chabda, who was arrested on September 1, as one of the main liaisoners and financial coordinators of the alleged group.He allegedly helped selected vendors secure supply-oriented works and facilitated the issuance of purchase orders, release of payments, and collection and distribution of illegal commissions, the agency said.The ED estimated that the proceeds of crime linked to the accused in the latest action amounted to about Rs 35 crore, against which assets worth Rs 31.70 crore were attached.Four people, including Chhattisgarh-cadre IAS officer Ranu Sahu, have so far been arrested in the case, while assets worth about Rs 50 crore have been attached, the agency told PTI.In summary, the ED has named 17 people in its supplementary complaint and attached assets worth Rs 31.70 crore as part of its continuing investigation into the alleged diversion of Chhattisgarh's DMF funds and collection of commissions.- Ends