The Enforcement Directorate's (ED) Raipur Zonal Office has provisionally attached movable and immovable properties worth approximately ₹31.70 crore in connection with the alleged misappropriation of District Mineral Foundation Trust (DMFT) funds in Chhattisgarh. The attachment order was issued on 29 October under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

Supplementary Charge Sheet Filed

On 30 October, the ED filed a supplementary charge sheet before the Special Court (PMLA) in Raipur against 17 accused individuals for offences under the PMLA. The accused include Satpal Singh Chabda and Mandip Chawla, identified among the key players in the alleged fraud.

How the Scam Allegedly Operated

According to the ED, the case centres on the systematic diversion of DMFT funds — meant for the welfare and development of mining-affected areas and communities — routed through Chhattisgarh Rajya Beej Evam Krishi Vikas Nigam (Beej Nigam). The agency says a well-organised syndicate involving public servants and agents manipulated the allocation and utilisation of these funds, favouring supply-oriented works with inflated procurement costs.

Illegal commissions allegedly ranging from 25% to 50% of the base value of purchase orders were extracted from rate-contract holder entities. A substantial portion of these commissions was reportedly passed on to public servants and influential persons in return for facilitating fund allocation, issuance of purchase orders, and release of payments, according to the ED.

Commissions were collected both in cash and through banking channels, then allegedly layered via multiple entities and accounts. Similar commissions were also reportedly siphoned from procurements undertaken by Beej Nigam using non-DMFT funds.

Key Accused and Arrests

Satpal Singh Chabda has been identified as one of the main liaisons and financial coordinators of the alleged syndicate. He purportedly facilitated the allocation of works to selected vendors, the issuance of purchase orders, the release of payments, and the collection and distribution of illegal commissions. Chabda was arrested by the ED on 1 September under Section 19 of the PMLA.

So far, four individuals have been arrested in the matter, including IAS officer Ramu Shau. The total proceeds of crime attributable to the accused have been quantified at approximately ₹35 crore, against which properties valued at ₹31.70 crore have now been attached.

Background and Ongoing Investigation

The investigation was initiated on the basis of FIRs registered by the Anti-Corruption Bureau (ACB)/Economic Offences Wing (EOW), Raipur, under the Prevention of Corruption Act, 1988, and provisions of the Indian Penal Code. Additional FIRs registered by Chhattisgarh Police in Kanker district and by the ACB/EOW, Raipur, were also clubbed into the ED's Enforcement Case Information Report (ECIR).

This is not the first time Chhattisgarh's mineral trust funds have come under scrutiny — DMFT accounts across mineral-rich states have repeatedly faced allegations of leakage and misuse since the fund's establishment under the Mines and Minerals (Development and Regulation) Amendment Act of 2015. The investigation into the roles of government servants and other agents involved in the misuse of DMF funds, collection and distribution of illegal commissions, and laundering of proceeds of crime is continuing, the agency said.