The alleged large-scale irregularities in the District Mineral Foundation (DMF) fund, created for the development of mining-affected regions in Chhattisgarh, have once again come under intense scrutiny, with questions being raised over the utilisation of nearly ₹575 crore. The case has gained momentum after the Enforcement Directorate (ED) carried out coordinated raids across nine locations, including Raipur, leading to the seizure of crucial documents, digital records and electronic devices now undergoing forensic examination.
According to investigation sources, multiple individuals including Shrikant Dubey are under the scanner, while allegations have emerged regarding irregularities in tender allocation routed through the Beej Nigam system. Officials claim that a nexus of contractors, intermediaries and certain functionaries allegedly manipulated the tendering process, prioritising projects with higher commission margins over actual developmental work intended for mining-affected areas.
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The probe has also brought several contractors and middlemen into focus, including Raipur-based businessman Vinay Garg, who is alleged to have played a role in influencing tender decisions. Investigators suspect that a coordinated network worked to tilt project approvals in favour of select entities, thereby compromising transparency and procedural fairness in fund utilisation.
The alleged irregularities are believed to be linked to projects executed during 2021–22 and 2022–23, during which several non-governmental organisations reportedly received DMF-linked contracts. In some cases, funds were allegedly diverted through layered financial structures, raising concerns about misuse of public resources intended for welfare and infrastructure development.
A key name that has emerged in the investigation is that of jailed businessman Manoj Kumar Dwivedi, whose NGO is suspected of being used as a conduit for securing multiple projects. The role of suspended IAS officer Ranu Sahu is also under examination, with allegations suggesting influence over tender processes and project selection mechanisms.
Joint investigations by the ED and the Economic Offences Wing (EOW) have further indicated that amendments in DMF fund utilisation rules may have allowed inclusion of smaller supply-based and service-oriented projects, such as material procurement, training, agricultural equipment, and health-related supplies. Officials believe these changes may have enabled a system where procurement-heavy projects created higher commission opportunities within the network.
Sources also indicate that nearly 42% commission transactions are suspected to have been routed through multiple channels within the network. Investigators are examining whether funds were systematically diverted through intermediaries before reaching final beneficiaries or were siphoned off through shell entities and contractual arrangements.
During the raids, electronic devices including mobile phones, laptops and storage units were seized. Preliminary analysis suggests the presence of financial transaction records, communication logs and digital chats that could provide crucial leads in mapping the money trail. Officials believe that a detailed forensic audit may reveal deeper linkages and expand the scope of the investigation significantly.
Earlier investigations conducted by the state’s Economic Offences Wing and the Anti-Corruption Bureau had already resulted in a voluminous charge sheet running into nearly 6,000 pages, detailing alleged procedural violations and financial mismanagement. Based on these findings, central agencies later expanded the probe to examine cross-linked financial structures and possible laundering channels.
Authorities are now focusing on tracing the complete lifecycle of fund allocation—from approval and tender issuance to final execution and payment disbursal. Preliminary findings suggest that in some cases, project completion was shown only on paper, with payments allegedly released without corresponding physical verification.
Officials further stated that several digital communications hint at a structured commission-sharing mechanism operating across multiple layers, indicating a well-organised financial network. However, all findings are currently being verified through documentary and technical evidence.
With the investigation still ongoing, agencies expect further revelations and potential identification of additional individuals linked to the alleged scam. The ED is continuing its analysis of seized materials, and more developments, including possible arrests, are expected in the coming days as the probe expands further.
