Chhattisgarh Chief Minister Vishnu Deo Sai launched a sharp attack on the previous Congress government on Saturday, 18 July 2026, accusing it of siphoning commissions from the District Mineral Foundation (DMF) — a welfare fund meant for communities displaced and polluted by mining operations — while responding to an opposition no-confidence motion on the floor of the Chhattisgarh Legislative Assembly.

Context

Addressing the assembly, CM Sai invoked Prime Minister Narendra Modi's vision behind the DMF framework, saying — 'aapke samay mein DMF mein bhi ghotala hua' [there was a scam in DMF during your time] — and alleged that the previous dispensation extracted 40 per cent commission from the fund. He framed the allegation as a betrayal of communities who already bear the twin burdens of displacement and pollution caused by mines and factories in their vicinity.

The no-confidence motion brought by the opposition provided the occasion for the Chief Minister to go on the offensive, turning a procedural challenge into a platform for governance accountability claims.

Policy Backdrop

The District Mineral Foundation was created as a statutory trust under the Mines and Minerals (Development and Regulation) Amendment Act, 2015, mandating that a portion of mining revenues be channelled into welfare, rehabilitation, and pollution mitigation for communities in affected districts. The provision was a signature initiative of the Modi government at the Centre, designed to ensure that mineral-rich regions and their residents receive a direct share of the wealth extracted from their land.

Chhattisgarh is one of India's most significant mineral-producing states, with substantial coal, iron ore, and bauxite deposits. The management of DMF funds has remained a contested political issue across successive state governments, with debates centring on utilisation rates, beneficiary targeting, and administrative transparency.

Stakeholders and Impact

The communities most directly affected by DMF governance are mining-affected populations — displaced families, tribal communities, and residents in pollution-prone zones across districts such as Korba, Raigarh, and Surguja. Funds under DMF are meant to finance drinking water, healthcare, education, and livelihood support in these areas.

If the commission allegations are substantiated through audit or legal proceedings, it would represent a significant diversion of welfare resources away from some of Chhattisgarh's most vulnerable populations. The BJP administration has positioned itself as a corrective force against such leakages since assuming power in December 2023.

What's Next

The assembly exchange is likely to intensify scrutiny of DMF utilisation records from the previous Congress tenure. Observers will watch for any formal audit referral, inquiry commission, or legislative committee probe into the alleged irregularities. At the national level, any proposed amendments to the MMDR Act or state-level DMF rules in upcoming sessions could further reshape how these funds are governed and monitored across mineral-rich states.