The FIRs alleged that state government officials, contractors and others had conspired to siphon off DMF funds.
RAIPUR (India CSR): The Directorate of Enforcement (ED), Raipur Zonal Office, has arrested Satpal Singh Chabda in an investigation concerning the alleged misappropriation of District Mineral Foundation (DMF) funds in Chhattisgarh. The arrest was made on September 1, 2026, under the Prevention of Money Laundering Act (PMLA), 2002. According to the ED, Chabda was produced before the Special Court under the PMLA in Raipur on the same day. The court granted the agency five days of custody remand. The investigation remains in progress.
The case concerns funds meant for people and areas affected by mining operations. Over different stages of the investigation, the ED has conducted searches, seized cash and valuables, frozen bank balances, attached properties and filed a prosecution complaint against accused persons.
***
What Are DMF Funds?
District Mineral Foundation Trusts are constituted in mining districts to work for the benefit of persons and areas affected by mining-related projects and activities. These trusts are funded by miners. The ED stated that various districts in Chhattisgarh received about Rs. 9,188.20 crore through DMF Trusts during the five financial years from FY2019-20 to FY2023-24. The agency has alleged that a part of these funds was diverted from their intended purpose.
According to the ED’s September 2026 press release, the alleged diversion involved the preference for supply-oriented works. The agency stated that such works provided scope for inflated pricing and the generation of commissions. The ED’s investigation is based on FIRs registered by the Chhattisgarh Police and the ACB/EOW, Raipur, under provisions of the Indian Penal Code, 1860, and the Prevention of Corruption Act, 1988.
***
Who Has Been Named?
In its provisional attachment order dated December 9, 2024, the ED stated that it attached movable and immovable properties valued at Rs. 21.47 crore. These included land, residential properties, fixed deposits and bank balances. The properties were stated to belong to or be owned by persons accused in the case, including IAS Ranu Sahu, IAS; Maya Varrier; Radheshyam Mirjha; Bhuvneshwar Singh Raj; Virendra Kumar Rathore; Bharosa Ram Thakur; Sanjay Shende; Manoj Kumar Dwivedi; Hrishabh Soni; and Rakesh Kumar Shukla.
In a September 2025 release, the ED said the provisional attachment of properties worth Rs. 21.47 crore had been confirmed by the Adjudicating Authority. The agency also stated in September 2025 that it had filed one prosecution complaint before the Special PMLA Court in Raipur, naming 16 persons as accused. It further stated that IAS Ranu Sahu, Maya Varrier and Manoj Kumar Dwivedi had been arrested in the case. The ED’s September 2026 release identified Satpal Singh Chabda as one of the alleged main liaisoners and financial coordinators of the alleged syndicate.
***
When Did The Investigation Begin?
The ED said it began its money-laundering investigation based on three FIRs registered by the Chhattisgarh Police. The FIRs alleged that state government officials, contractors and others had conspired to siphon off DMF funds. On August 9 and 10, 2024, the ED conducted searches at four locations in Chhattisgarh and Maharashtra linked to the DMF case. The searches covered premises linked to alleged accommodation-entry providers and their patrons.
Following these searches, the ED said it seized cash of Rs. 76.50 lakh and froze eight bank accounts with balances of about Rs. 35 lakh. Together, the cash seized and bank balances frozen were valued at approximately Rs. 1.11 crore. The agency also reported seizure of stamps belonging to alleged dummy firms, documents and digital devices during the August 2024 operation.
On December 9, 2024, the ED issued its provisional attachment order for properties valued at Rs. 21.47 crore. At that stage, the agency said it had quantified total proceeds of crime at Rs. 90.35 crore. The ED stated that, as of December 9, 2024, properties and assets worth Rs. 23.79 crore had been provisionally attached, seized or frozen in the case. This amount included the Rs. 21.47 crore attachment and other seized or frozen assets.
***
Where Were The Alleged Transactions Routed?
According to the ED, a substantial part of the DMF-linked activity under investigation was routed through Chhattisgarh Rajya Beej Evam Krishi Vikas Nigam Ltd., commonly known as Beej Nigam. In September 2025, the ED said DMFT funds of various Chhattisgarh districts amounting to nearly Rs. 350 crore had been used through Beej Nigam. The agency stated that works were allotted to vendors and contractors for the supply of agricultural implements, pulverisers, mini dal mills, seeds and other items.
The ED alleged that commissions or bribes of up to 60% of contract value were received from vendors and contractors through liaisoners. According to the agency, the money was then passed to certain government officials and other associates. In its September 2026 release, the ED stated that agents and liaisoners charged commissions ranging from 25% to 50% of the base value of purchase orders issued in favour of rate-contract-holder entities. The agency alleged that a substantial part of these commissions was passed on to public servants and influential persons for the issuance of work orders and release of payments.
The ED said its searches on September 3 and 4, 2025, covered 28 locations in Chhattisgarh, including residential and official premises of contractors, vendors, liaisoners and middlemen associated with Beej Nigam. During those searches, the agency reported seizure of Rs. 4 crore in cash, 10 kg of silver bullion, documents and digital devices.
***
Why Is The Case Being Investigated?
The ED has alleged that contractors and vendors paid commissions or illegal gratification to secure DMF contracts and obtain clearance of bills. In its December 2024 release, the agency alleged that contractors paid commissions ranging from 15% to 42% of contract value to corrupt public officials. In the August 2024 release, the ED described the alleged commission range as 25% to 40% of contract value. Its September 2025 release referred to alleged commissions of up to 60% in works routed through Beej Nigam.
The agency alleged that contractors withdrew funds credited to their bank accounts in cash or transferred money to accommodation-entry providers. According to the ED, these transactions were shown by vendors as purchases of goods, although no actual purchase took place.
The ED alleged that cash generated through these transactions was used for paying bribes to officials responsible for allotting DMF works or clearing vendors’ bills. The agency also alleged that a part of the cash was retained by vendors for their own benefit.
During the earlier searches, the ED said it seized unaccounted cash and jewellery worth Rs. 2.32 crore. The agency alleged that these assets represented part of the bribe amount received by public servants during execution of DMF works.
What Does ED Allege Against Satpal Singh Chabda?
According to the ED, Satpal Singh Chabda identified supply-based DMFT works that could generate substantial commissions and apportioned these works among selected vendors on a percentage basis. The agency alleged that he facilitated the issuance of work orders and release of payments, collected commissions from vendors and participated in distributing the money among members of the alleged syndicate.
The ED stated that searches carried out between September 3 and 4, 2025 resulted in the seizure of documents that it described as incriminating. It also cited analysis of banking transactions and statements recorded under Sections 17 and 50 of the PMLA. Based on this material, the ED alleged that Chabda received illegal commissions aggregating to approximately Rs. 31 crore. The agency stated that the amount was received in bank accounts of the accused, his family members, Hindu Undivided Families and entities allegedly controlled by him.
The ED has treated this amount as proceeds of crime for the purpose of its PMLA investigation. The agency arrested Chabda under Section 19 of the PMLA on September 1, 2026.
The ED has said further investigation in the DMF case is under progress.
© Copyright Disclaimer: All rights reserved. No part of this report may be reproduced, republished, distributed or transmitted in any form without prior written permission from India CSR®.
