ED Seizes ₹31.70 Crore in DMF Scam; Supplementary Charges Filed Against 17 Accused

Raipur, October 31 (Daily Kiran) : The Enforcement Directorate (ED) has temporarily seized assets valued at approximately ₹31.70 crore in connection with the District Mineral Foundation Trust (DMFT) fund misuse. This action took place in Raipur, where the agency filed a supplementary chargesheet against 17 individuals, including Satpal Singh Chhabra and Mandeep Chawla, under the Prevention of Money Laundering Act (PMLA) on October 30.

The temporary seizure order was issued on October 29 under PMLA provisions. The case involves systematic embezzlement of the DMFT funds, which are intended for the welfare and development of mining-affected areas and communities, managed through the Chhattisgarh State Seed and Agricultural Development Corporation.

According to an ED press release, a well-organized syndicate of government employees and agents manipulated the allocation and use of these funds. They prioritized projects that inflated purchase costs, extracting illegal commissions ranging from 25 to 50 percent on total purchase orders awarded to companies holding ‘rate contracts.’ A significant portion of these commissions allegedly reached government officials and influential individuals to facilitate fund allocations, issue purchase orders, and secure payments.

The commissions were collected through cash and banking channels, often laundered through various companies and accounts. The ED stated that similar commissions were also extracted from purchases made by the Seed Corporation using non-DMF funds.

Chhabra is considered one of the main intermediaries and financial coordinators of this syndicate. He allegedly assisted in securing work for select vendors, issuing purchase orders, facilitating payments, and collecting and distributing illegal commissions. The ED arrested him on September 1 under Section 19 of the PMLA, estimating the crime proceeds linked to the accused at around ₹35 crore, for which ₹31.70 crore in assets have now been seized.

So far, four individuals, including IAS officer Ramu Shao, have been arrested in this case. The investigation began based on an FIR registered by Raipur’s Anti-Corruption Bureau (ACB)/Economic Offences Wing (EOW) under the Prevention of Corruption Act, 1988, and sections of the Indian Penal Code (IPC).

Other FIRs lodged by the Chhattisgarh Police in Kanker district and by the Raipur ACB/EOW have also been incorporated into the ED’s Enforcement Case Information Report (ECIR). The inquiry into the misuse of DMF funds, collection and distribution of illegal commissions, and the involvement of government employees and other agents in money laundering remains ongoing.