ED arrests Satpal Singh Chabda in Chhattisgarh DMF scam over ₹31 crore
Synopsis
The ED has arrested Satpal Singh Chabda — allegedly the financial nerve of Chhattisgarh's DMF scam — after tracing ₹31 crore in illegal commissions to his network. The case centres on the systematic looting of ₹9,188.20 crore in mining-community welfare funds over five years, with commissions of up to 50% allegedly siphoned through a syndicate of public servants and liaisoners.
Key Takeaways
The ED Raipur Zonal Office arrested Satpal Singh Chabda on 2 September under PMLA, 2002 in the Chhattisgarh DMF scam .
The Special Court, PMLA, Raipur granted five days' ED custody after his production before court.
Chhattisgarh districts received approximately ₹9,188.20 crore under DMFT between FY 2019-20 and FY 2023-24 ; a portion was allegedly diverted.
Commissions of 25% to 50% of purchase order values were allegedly charged and distributed among public servants via Beej Nigam .
Chabda allegedly received illegal commissions of approximately ₹31 crore , traced to accounts of himself, family members, HUFs, and controlled entities.
ED searches conducted in September 2025 had earlier uncovered incriminating documents; further investigation is ongoing.
The Directorate of Enforcement (ED) Raipur Zonal Office has arrested Satpal Singh Chabda under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the District Mineral Foundation (DMF) scam in Chhattisgarh. Chabda, described by the ED as a key liaisoner and financial coordinator within the alleged fraud syndicate, was taken into custody on Tuesday, 2 September.
Court Custody and Legal Proceedings
Following his arrest, Chabda was produced before the Special Court, PMLA, Raipur, which granted five days' ED custody. The investigation traces back to multiple First Information Reports (FIRs) registered by the Anti-Corruption Bureau (ACB), the Economic Offences Wing (EOW), Raipur, and the Chhattisgarh Police, all relating to the alleged misappropriation of DMF funds across the state.
Scale of the Alleged Fraud
Between FY 2019-20 and FY 2023-24, districts in Chhattisgarh received approximately ₹9,188.20 crore under the District Mineral Foundation Trust (DMFT) — funds legally mandated to benefit communities affected by mining activities. According to the ED, a portion of these funds was diverted by deliberately prioritising supply-oriented works, which enabled inflated pricing and systematic commission generation.
A significant share of the diverted funds was reportedly routed through the Chhattisgarh Rajya Beej Evam Krishi Vikas Nigam (Beej Nigam). Agents and liaisoners allegedly charged commissions ranging from 25% to 50% of the base value of purchase orders issued to Rate Contract Holder entities. These commissions were then distributed among public servants and influential individuals in exchange for work orders and payment releases, the ED stated.
Chabda's Alleged Role in the Syndicate
The ED alleges that Chabda occupied a central position in the fraud network. He reportedly identified lucrative supply-based DMFT works, allocated them among select vendors, facilitated the issuance of work orders, ensured payment releases, and collected commissions for redistribution within the syndicate. The agency's earlier searches, conducted in September 2025 under Section 17(1) of PMLA, had already unearthed what it described as incriminating documents linked to the scam.
Subsequent analysis of banking transactions and statements recorded under Sections 17 and 50 of PMLA revealed that Chabda allegedly received illegal commissions totalling approximately ₹31 crore. These funds, classified as Proceeds of Crime, were traced to accounts belonging to Chabda, his family members, Hindu Undivided Families (HUFs), and entities under his control. He was consequently arrested under Section 19 of PMLA, 2002.
Investigation Ongoing
This comes amid a broader federal crackdown on alleged misuse of mineral welfare funds across mineral-rich states. The ED has confirmed that further investigation into the DMF scam remains underway, suggesting additional arrests or asset attachments may follow. The case underscores longstanding concerns about the oversight mechanisms governing DMFT disbursements, which critics argue remain inadequately audited despite their substantial scale.
Point of View
But for what it reveals about the structural vulnerability of DMFT — a welfare mechanism designed for mining-affected communities that allegedly became a commission-extraction machine. The routing of funds through Beej Nigam points to a deliberate layering strategy, not opportunistic corruption. With commissions reportedly as high as 50%, the question is how such margins went undetected across five financial years of audits. The ED's continued investigation suggests Chabda is unlikely to be the last arrest — and the real accountability test will be whether the public servants who allegedly received distributions are named and prosecuted.
NationPress
2 Sept 2026
Frequently Asked Questions
Who is Satpal Singh Chabda and why was he arrested?
Satpal Singh Chabda is a liaisoner and financial coordinator who was arrested by the ED Raipur Zonal Office on 2 September under PMLA, 2002, in connection with the Chhattisgarh DMF scam. He is alleged to have collected and distributed illegal commissions of approximately ₹31 crore within a syndicate that diverted mining-community welfare funds.
What is the Chhattisgarh DMF scam?
The District Mineral Foundation (DMF) scam involves the alleged misappropriation of welfare funds meant for communities affected by mining activities across Chhattisgarh. Between FY 2019-20 and FY 2023-24, districts received approximately ₹9,188.20 crore under DMFT, a portion of which was allegedly diverted through inflated pricing, commission generation, and routing via Beej Nigam.
How much money is Satpal Singh Chabda alleged to have received illegally?
According to the ED, Chabda allegedly received illegal commissions amounting to approximately ₹31 crore, classified as Proceeds of Crime. These funds were traced to accounts belonging to him, his family members, Hindu Undivided Families (HUFs), and entities under his control.
What was the role of Beej Nigam in the DMF scam?
The Chhattisgarh Rajya Beej Evam Krishi Vikas Nigam (Beej Nigam) was allegedly used as a conduit to funnel diverted DMF funds. Agents and liaisoners reportedly charged commissions of 25% to 50% of the base value of purchase orders issued to Rate Contract Holder entities through this organisation.
What happens next in the ED investigation?
The ED has confirmed that investigation into the DMF scam is ongoing. Chabda has been remanded to five days' ED custody by the Special Court, PMLA, Raipur. Further arrests, asset attachments, or charge sheets may follow as banking transaction analysis and witness statements continue to be processed.
