The alleged misuse of District Mineral Foundation (DMF) in the mineral rich Keonjhar district has come under judicial scrutiny with Orissa High Court directing State’s Chief Secretary to probe into the alleged irregularities.

An RTI activist, Subhakanta Nayak, had drawn the attention of the High Court and sought for a high-level probe alleging that there was laundering of DMF grants by the government agencies, thereby depriving the mining-affected people of benefits of the development projects.

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Keonjhar is one of the major mineral producing districts of Odisha with iron ore, manganese ore, chromite, quartzite, bauxite abundantly found in this district.

“The petitioner has raised issues relating to breach of the provisions of the rules in management of the funds managed by the District Minerals Foundation, Keonjhar.

”Rule 18-B of the Rules contemplates the constitution of the State Level Committee by the State Government to monitor and review the functioning of the trust, headed by the Chief Secretary as the Chairman of the committee. The State level committee has the power, inter alia, to call for reports and returns from the Trust and issue directives or advisories to the trust, not inconsistent with the provisions of these Rules.

“Considering the nature of the allegations made in the Writ petition and documents brought on record by way of the rejoinder affidavit, we deem it proper to direct that let the allegations made therein be examined by the State Level Committee and let the nature of action, which is required in the facts and circumstances, be considered”, a Division Bench of Chief Justice Chakradhari Sharan Singh and Justice Savitri Ratho stated in the order.

Section 9-B of the Mines and Minerals Development & Regulation Act, 1957, envisages establishment of a trust in the name of District Mineral Foundation with an object to work for the interest and benefit of persons residing in the area affected by mining related operations in such manner as may be prescribed by the State Government.

As per the provisions, DMF funds are spent in developing infrastructure, providing piped water supply, building pucca roads, enhancing skill development and creating new job opportunities in the areas affected by mining operations.

The funds of DMF trust come from mining companies operating in the respective districts and they pay an equivalent of 30 per cent of the royalty amount for leases granted before 2015, and 10 per cent for leases granted after that. DMF fund is to be spent on improving human development indicators through investments in high-priority areas such as healthcare, education, women and child development, improving sustainable livelihood, and income opportunities in areas adversely affected by mining.