RAIGARH (India CSR): In a significant escalation of the probe into Chhattisgarh’s District Mineral Fund (DMF) scam, the state’s Economic Offences Wing (EOW) arrested four individuals, including a former deputy collector, on May 10, 2025, for their alleged roles in a multi-crore embezzlement scheme. The arrests, targeting officials linked to fraudulent tenders and misappropriation in Korba, signal a robust crackdown on systemic corruption that diverted funds meant for public welfare. This high-profile case, centered in one of India’s resource-rich regions, underscores the urgency of restoring accountability in public fund management.
Major Arrests in Korba’s DMF Scandal
The EOW detained Bharosa Ram Thakur, a former deputy collector previously posted in Raigarh, along with two Janpad Panchayat CEOs, Virendra Kumar Rathore of Patthalgaon and Bhuneswar Singh Raj, and Radheshyam Mirjha, a former Janpad CEO. Thakur, who served as the nodal officer for DMF in Korba, is accused of orchestrating approvals for dubious projects without oversight from the governing council. The arrests follow extensive investigations revealing a staggering Rs 90.35 crore in misappropriated funds, with the Enforcement Directorate (ED) seizing assets worth Rs 21.47 crore linked to the accused.
Systemic Fraud in DMF Operations
The DMF, established to fund welfare projects for mining-affected communities, became a target for exploitation during the accused officials’ tenures. Investigations uncovered a pattern of bypassing guidelines to favor select contractors, who paid commissions ranging from 25% to 40% of contract values. Fake bills, manipulated tenders, and fictitious transactions facilitated the siphoning of funds, with money allegedly laundered through cash payments and property investments. The EOW’s findings point to a well-organized syndicate that undermined public welfare initiatives, particularly in Korba, a key mining hub.
Raigarh and Jashpur Connections
The scam’s tentacles extend beyond Korba, with evidence suggesting irregularities in funds transferred from Raigarh to Jashpur. Thakur, who previously served in Raigarh, is accused of approving inflated contracts and verifying forged documents, enabling illicit gains. Rathore, as CEO of Patthalgaon Janpad Panchayat, allegedly greenlit fraudulent tenders, amassing wealth disproportionate to his income. Earlier ED raids in 2024 uncovered unaccounted cash, jewelry, and suspicious bank transactions at the accused’s residences, reinforcing claims of money laundering under the Prevention of Money Laundering Act (PMLA).
Ongoing Investigations and Broader Implications
The EOW’s actions follow the ED’s filing of a chargesheet against 16 individuals in December 2024, signaling a multi-agency effort to dismantle the corruption network. The DMF scam, estimated to involve hundreds of crores, has sparked public outrage, with social media posts on X calling for stricter oversight of public funds. The arrests highlight systemic issues in Chhattisgarh’s administrative framework, particularly under the previous Congress government (2018–2023). With assets worth Rs 23.8 crore already attached, the ED is probing deeper to trace laundered funds and identify additional culprits.
Strengthening Accountability in Chhattisgarh
The arrests come amid Chhattisgarh’s broader anti-corruption drive, with over 200 officials investigated in the past two years for scams involving liquor, coal, and medical supplies, according to state records. The DMF case, one of the state’s largest financial scandals, has prompted calls for digital tracking of public funds and stricter tendering processes. Chief Minister Vishnu Deo Sai, addressing a rally in Raipur on May 11, 2025, vowed to ensure transparency, stating, “Every paisa meant for public welfare will reach its rightful destination.” The ongoing probe is expected to lead to further arrests, reshaping trust in governance.
(India CSR)
