The Enforcement Directorate (ED) has revealed a significant corruption scandal within the District Mineral Fund (DMF) of Chhattisgarh, with kickbacks amounting to hundreds of crores of rupees in Korba district alone. According to a press release issued by the ED on Monday, the Directorate of Enforcement (ED), Raipur, conducted search operations on March 1, 2024, at 13 locations in Chhattisgarh linked to the DMF scam under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The investigation was initiated based on three different FIRs registered by the Chhattisgarh Police, which alleged involvement in siphoning off exchequer money by DMF contractors in collusion with state government officials and political executives. The case pertains to corruption in the utilization of funds from the District Mineral Fund in Chhattisgarh, established to benefit those affected by mining-related projects and activities.
ED's investigation uncovered that contractors paid substantial amounts of commission and illegal gratification to officials and political executives, ranging from 25% to 40% of the contract value. The kickbacks were facilitated through cash generated by vendors using accommodation entries. The DMF Fund allocated only to District Korba exceeded Rs. 2000 Crore from its inception till FY 2022-23, with an estimated kickback amount of ₹500-600 Crore in Korba alone.
During the search operations, the ED seized cash amounting to approximately Rs. 27 Lakh and recovered various other incriminating evidence in digital and documentary form. Further investigation into the case is underway, including the analysis of data for the entire state and quantification of Proceeds of Crime.