Chhattisgarh DMF scam: ED raids 13 places in Chhattisgarh, seizes Rs 27 lakh

New Delhi [India], March 4 : The Enforcement Directorate (ED) has seized Rs 27 lakh in a search operation conducted across 13 locations in Chhattisgarh linked to the District Mineral Fund (DMF) scam, the agency said on Monday.
Officials of ED's Raipur wing carried out the search operations on March 1 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in this case, which is related to corruption in the use of funds from the DMS in Chhattisgarh. DMF is a trust funded by miners that has been set up in all districts of Chhattisgarh with an aim to work for the benefits of those affected by mining-related projects and activities.
During the search operations, the agency said its officials seized cash amounting to Rs 27 lakh. Also, various other incriminating evidence in the form of digital as well as documentary have been recovered and seized.
ED initiated an investigation on the basis of three different First Information Reports registered by Chhattisgarh Police under various sections of the Indian Penal Code, 1860 for involvement in siphoning off exchequer money by DMF contractors in collusion with officials of the state government and political executives.
The ED investigation revealed that the contractors have paid a huge amount of commission and illegal gratification to officials and political executives, which is to the tune of 25 per cent to 40 per cent of the contract value.
"Cash used for payment of kickbacks was generated by the vendors using accommodation entries. DMF Fund allocated only to District Korba is more than Rs 2000 crore from its inception till the financial year 2022-23. With the prevalent rate of commission, the commission amount alone in Korba would be to the tune of Rs 500-600 crore. Analysis of data for the whole state and quantification of proceeds of crime is underway," said the ED in a statement.