New Delhi [India], September 2 (ANI): The Enforcement Directorate (ED) has arrested an alleged key liaisoner and financial coordinator of a syndicate in connection with the alleged misappropriation of District Mineral Foundation (DMF) funds in Chhattisgarh, the agency said on Wednesday.
The accused, identified as Satpal Singh Chabda, was arrested on September 1 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
He was produced before a Special PMLA Court in Raipur, which granted five days of ED custody remand, according to the agency.
The ED said its investigation was initiated on the basis of multiple First Information Reports (FIRs) registered by the Anti-Corruption Branch and Economic Offences Wing in Raipur, along with Chhattisgarh Police, in connection with the alleged diversion and misappropriation of DMF funds.
According to the agency, DMF Trusts are constituted in each revenue district for the benefit of people and areas affected by mining operations. The ED alleged that these trusts were misused by an organised syndicate comprising public servants, liaisoners and vendors.
The agency said various districts received Rs 9,188.20 crore under DMFT between financial years 2019-20 and 2023-24.
The ED alleged that a portion of the funds was diverted from their intended purpose by favouring supply-oriented works, which allegedly provided greater scope for inflated pricing and generation of commissions.
“Investigation revealed that DMF Trusts, constituted in each revenue district for the benefit of persons and areas affected by mining operations, were misused by a well-organized syndicate of public servants, liaisoners and vendors,” the agency said.
According to the ED, a substantial portion of the allegedly diverted funds was routed through the Chhattisgarh Rajya Beej Evam Krishi Vikas Nigam, also known as Beej Nigam.
The agency alleged that agents and liaisoners charged commissions ranging from 25 per cent to 50 per cent of the base value of purchase orders issued in favour of rate-contract-holder entities.
The ED further alleged that a substantial portion of these commissions was subsequently passed on to public servants and influential persons in exchange for facilitating the issuance of work orders and release of payments.
The agency described Chabda as one of the main liaisons and financial coordinators of the alleged syndicate.
According to the ED, Chabda identified supply-based DMFT works that could generate substantial commissions, allocated such works among selected vendors on a percentage basis and facilitated the issuance of work orders and release of payments.
The agency further alleged that he collected commissions from vendors and participated in their distribution among members of the alleged syndicate.
The ED had earlier conducted searches in the case on September 3 and 4, 2025 under Section 17(1) of the PMLA, during which several documents were allegedly seized.
Based on its analysis of banking transactions and statements recorded under Sections 17 and 50 of the PMLA, the agency alleged that Chabda received illegal commissions amounting to approximately Rs 31 crore.
The ED said the alleged illegal commission constitutes “Proceeds of Crime” under the PMLA.
According to the agency, the money was received in accounts belonging to Chabda, his family members, Hindu Undivided Families (HUFs) and entities allegedly controlled by him.
The investigation into the alleged DMF fund diversion and the wider syndicate is continuing. (ANI)
Related reading
