ED has provisionally attached movable and immovable properties worth approximately Rs 31.70 crore in connection with the alleged misappropriation of District Mineral Foundation (DMF) funds in Chhattisgarh.
The Raipur Zonal Office of the agency issued a Provisional Attachment Order on 29 October 2026 under the Prevention of Money Laundering Act. A day later, on 30 October 2026, it filed a supplementary prosecution complaint against 17 accused before the Special Court for PMLA cases in Raipur.
The ED press release dated 31 October 2026 stated that the investigation relates to the alleged diversion and laundering of funds belonging to District Mineral Foundation Trusts. These funds are meant for welfare and development work in areas affected by mining. According to the agency, the alleged diversion took place through procurement carried out via the Chhattisgarh Rajya Beej Evam Krishi Vikas Nigam, commonly known as Beej Nigam.
The ED has said that a syndicate involving public servants and private agents or liaisoners manipulated the allocation and use of DMF funds. Instead of focusing on the developmental needs of mining-affected communities, the network allegedly favoured supply-oriented procurement works. Purchase costs were inflated and substantial illegal commissions were extracted.
Agents and liaisoners allegedly collected commissions ranging from 25 per cent to 50 per cent of the base value of purchase orders issued to entities that held rate contracts. These commissions were then distributed among public servants and influential persons in return for facilitating the allocation of DMF funds, the issuance of purchase orders and the release of payments.
The agency has identified Satpal Singh Chabda and Mandip Chawla among the 17 accused named in the supplementary complaint. It has described Chabda as one of the principal liaisoners and financial coordinators of the alleged syndicate. Four accused, including IAS officer Ranu Sahu, have been arrested in the overall matter. The total proceeds of crime attached so far stand at approximately Rs 50 crore. In the latest action, the proceeds of crime quantified against the accused amount to about Rs 35 crore.
The District Mineral Foundation was created under Section 9B of the Mines and Minerals Development and Regulation Act. Mining leaseholders contribute to the fund so that communities affected by mining can receive benefits. The money is meant for high-priority areas such as drinking water, healthcare, education, sanitation, environmental protection, skill development and welfare of women, children, persons with disabilities and senior citizens. It can also be used for physical infrastructure, irrigation and livelihood support under the framework of the Pradhan Mantri Khanij Kshetra Kalyan Yojana.
The ED has alleged that the funds were channelled into a commission-based procurement system rather than being used strictly for these welfare objectives. The investigation has also found that agents and liaisoners collected similar commissions on procurement undertaken through Beej Nigam from funds other than DMF money. This indicates that the alleged network may have operated across a wider range of government procurement through the same corporation.
Satpal Singh Chabda was arrested by the ED on 1 September 2026 under Section 19 of the PMLA. He was produced before the Special Court and remanded to ED custody. Earlier, the Chhattisgarh High Court had rejected his bail application in the related state case on 15 May 2026. The High Court order recorded the prosecution’s case that Chabda had been facilitating supply works in the Agriculture Department since 2019 and had acted as an intermediary between rate-contract vendors and government departments.
According to the material placed before the court, he allegedly collected commissions of 30 to 35 per cent from vendors, forwarded about 10 per cent upwards and shared the remaining 20 to 25 per cent with Mandeep Chawla. The order also noted allegations of cash collections and bank transfers involving several firms and individuals.
Mandip Chawla, also referred to as Mandeep Chawla, is named in the ED’s supplementary complaint. The High Court order recorded that he had approached Chabda with a proposal to secure departmental work and that the two had shared commissions. It further recorded allegations that large amounts of cash collected from various firms were routed through him. The order mentioned that Chabda described himself as a partner with Chawla in a firm called Sand Agritech.
Ranu Sahu, an IAS officer of the Chhattisgarh cadre, is among the four persons arrested in the ED case. Her name had earlier figured in proceedings related to alleged irregularities in DMF-funded works. A government statement reported in January 2024 had referred to allegations of misuse of official positions, improper tender allocation and facilitation of payments to bidders and middlemen.
The investigation began with the ED registering an Enforcement Case Information Report in January 2024. The state Economic Offences Wing and Anti-Corruption Bureau registered a related FIR shortly afterwards after receiving information from the ED. In March 2024 the ED conducted searches at 13 locations in Chhattisgarh and seized cash and documents.
At that stage the agency had noted that DMF allocations in Korba district alone had exceeded Rs 2,000 crore from the inception of the fund until the financial year 2022-23. It had estimated that commissions at the alleged prevailing rates could amount to Rs 500-600 crore in that district. That figure was an early investigative estimate and has not been presented as a final quantified finding of proceeds of crime.
The latest attachment of Rs 31.70 crore and the cumulative figure of about Rs 50 crore represent properties secured under the PMLA so far. A provisional attachment is a temporary measure. It remains subject to confirmation by the Adjudicating Authority after the affected parties are given an opportunity to respond. The filing of a prosecution complaint places the allegations and supporting material before the Special Court. Neither the attachment nor the complaint establishes the guilt of any accused. The allegations will be tested during the adjudication and trial processes.
The ED has stated that commissions were collected both in cash and through banking channels and were subsequently layered through various entities and accounts. The investigation continues to examine the movement of funds, the role of intermediaries and the connection between the alleged payments and decisions relating to the allocation of work and release of payments.
The case centres on the alleged conversion of public welfare funds into a commission-generating procurement network. The District Mineral Foundation was created specifically to ensure that mining-affected communities benefit from mineral extraction. The ED’s investigation seeks to establish whether funds meant for drinking water, healthcare, education and environmental restoration were instead diverted through manipulated procurement and illegal commissions. The agency has so far attached properties valued at approximately Rs 50 crore and has brought 17 accused before the Special Court through the latest supplementary complaint. Further proceedings will determine the outcome of the case.
