The Enforcement Directorate (ED) has uncovered Rs 5-6 billion commission scam in Chhattisgarh in the District Mineral Foundation (DMF) funds, predominantly centered in the Korba district, amidst a statewide DMF scandal.
The DMF, established to benefit communities affected by mining activities, has been the subject of widespread embezzlement. Its funds, mandated by law, are intended to support development projects and alleviate the socio-economic impact of mining on local communities.
In an official statement, the ED disclosed extensive search operations conducted across 13 locations in Chhattisgarh on March 1, 2024, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The searches were aimed at investigating the DMF scandal and uncovering the intricate web of corruption surrounding it.
The investigation was prompted by multiple FIRs filed by the Chhattisgarh Police under various sections of the Indian Penal Code, implicating government officials, political figures, and contractors in the misappropriation of government funds allocated for DMF projects. This misuse has raised serious concerns about systemic corruption across the state.
During the probe, it came to light that contractors paid exorbitant commissions ranging from 25 to 40 per cent of the contract value to officials and political figures in the state. Cash transactions were facilitated through real estate deals, exacerbating the scale of corruption. The Korba district alone received a staggering Rs 2,000 crore in DMF funds by the financial year 2022-23, with estimated commissions amounting to a whopping Rs 500 to 600 crore.
The search operations led to cash seizures totaling approximately 27 lakh, alongside the confiscation of incriminating digital and documentary evidence. The investigation remains ongoing, with a concerted effort to hold accountable those responsible for the misappropriation of public funds.
Former collector of Korba, Ranu Sahu, is presently in jail for alleged involvement in coal levy cases. Since the enactment of the DMF Act in 2015, Korba district alone has received annual deposits of 20 billion rupees in DMF funds. However, rampant misuse of these funds has been observed, implicating many senior officers who served during this period.
The ED probe is targeting lower-level officials in the administration, signaling a potential crackdown on corruption across multiple districts. An impartial investigation could lead to accountability not only in Korba but also among collectors, officials from various departments, politicians, and contractors across the state.