By The SanvaadGarh
What began as a promise of justice for mining-affected communities has unraveled into one of Chhattisgarh’s most egregious corruption scandals. The District Mineral Foundation (DMF)—designed to channel mining royalties into healthcare, education, and infrastructure for displaced tribal populations—became a cash cow for bureaucrats, politicians, and middlemen in Korba.
At stake? Over ₹2,000 crore, allegedly siphoned through fake tenders, inflated contracts, and a systematic commission racket. At the centre? High-profile figures, including a suspended IAS officer, a former chief minister’s aide, and local officials.
What is the DMF, and Why Does It Matter?
The District Mineral Foundation was established under the Mines and Minerals (Development and Regulation) Amendment Act, 2015. Funded by mining royalties (10–30% of royalty payments), its purpose is to support communities in mining-affected areas—primarily tribal, rural, and marginalised populations.
In mineral-rich Korba, DMF funds amassed over ₹2,000 crore in the past six years, earmarked for roads, schools, primary health centres (PHCs), and water schemes. Yet, much of this promise remains unfulfilled, diverted by systemic corruption.
What the EOW Found: A Criminal Syndicate in Bureaucratic Robes
On May 27, 2025, the Chhattisgarh Economic Offences Wing (EOW) filed a 6,000-page chargesheet, naming nine key accused in the DMF scam:
- Ranu Sahu (Suspended IAS) – Former Korba Collector
- Saumya Chaurasia – Former Deputy Secretary to CM Bhupesh Baghel
- Maya Warrier – Former Assistant Commissioner, Tribal Development
- Bharosa Ram Thakur – Former Deputy Collector and DMF Nodal Officer
- Bhuneswar Singh Raj – Former Janpad Panchayat CEO
- Virendra Rathore – Former Janpad Panchayat CEO
- Radheshyam Mirjha – Former Janpad Panchayat CEO
- Suryakant Tiwari – Businessman
- Manoj Dwivedi – Vendor and alleged middleman
They face charges under:
- IPC Sections 120-B (criminal conspiracy), 420 (cheating), 467/468 (forgery)
- Prevention of Corruption Act Sections 7 (public servant taking gratification), 12 (abetment)
- PMLA (Prevention of Money Laundering Act), with parallel investigations by the Enforcement Directorate (ED)
Most accused are detained in Raipur Central Jail, with bail denied as of May 2025
How the Loot Worked
The EOW chargesheet and ED probe revealed a sophisticated scheme:
- Commission Rackets: Contracts carried 25–40% commissions, with up to ₹75 crore siphoned from Korba’s DMF funds during 2021–22 and 2022–23.
- Fake Tenders: Work orders were issued for non-existent projects, with payments cleared without verification.
- Shell Vendors: Preferred contractors, linked to the accused, received tenders in exchange for kickbacks via cash or shell companies.
- Ghost Projects: Tenders for schools and infrastructure were approved without groundwork. For instance, payments for school construction were cleared despite no foundations being laid.
A senior EOW official stated, “Instead of borewells and ambulances, villagers got ghost bills and broken promises.”
The ED estimates ₹500–600 crore may have been misappropriated from Korba’s DMF funds, though the exact figure awaits forensic audit confirmation
What Was Seized
During EOW and ED raids (March–October 2024):
- ₹27 lakh in cash, incriminating documents, forged bills, and tender files
- Mobile phones, pen drives, and laptops containing digital evidence
- Jewelry worth several crores
- Evidence of undeclared foreign bank accounts and benami (proxy) assets
The ED also traced cash trails linked to political donations and family-run businesses, though specific beneficiaries remain under investigation.
Justice Still Pending
On May 14, 2025, the Chhattisgarh High Court rejected bail for key accused, including Ranu Sahu and Saumya Chaurasia, citing “prima facie evidence” of a “deep-rooted conspiracy” under the Prevention of Corruption Act.
However, no political figures have been charged, despite allegations of high-level patronage. The Supreme Court granted interim bail to six accused, including Sahu and Chaurasia, in a related coal scam case on May 29, 2025, but they were rearrested in the DMF case, ensuring continued detention.
The Real Victims: Tribal Communities of Korba
The DMF was meant to provide a safety net for tribal families displaced by mining, who lost forests, water sources, and livelihoods. Instead, they face betrayal:
- Bhalumara: No PHC was built, despite a ₹3 crore sanction.
- Katghora: Piped water projects remain non-functional, despite ₹6 crore in tenders.
- Chhurikala: Children travel 8 km to school, as a promised DMF-funded school was never constructed.
“We were told a health centre would come. All we saw were whiteboards and fake inaugurations,” says Ramvati Bai, a widow from Pali village.
DMF in Numbers (Korba)
- Total DMF Funds Collected (till 2023): ₹2,000+ crore
- Estimated Fraud/Kickbacks: ₹500–600 crore
- Projects Found Non-compliant: 130+
- Officers Accused: 9
- Arrests Made: 9
- Bail Status: Denied (as of May 2025)
The SanvaadGarh Verdict
This isn’t just a scam—it’s an institutional betrayal. Funds meant to uplift Chhattisgarh’s most vulnerable were looted by those entrusted to protect them. The DMF, once a beacon of hope, now symbolizes extraction without accountability.
We demand:
- Political Accountability: Who shielded the accused?
- Independent DMF Audit: Publish a transparent report on fund usage.
- Reparations for Korba’s Tribal Belt: Ensure justice for affected communities.
Until these demands are met, we will not look away.
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