Investigation Reveals Rs 31 Crore Illicit Commission in DMF Misuse
The Enforcement Directorate’s latest findings have exposed a massive ₹31 crore illegal commission tied to the misuse of District Mineral Foundation funds in Chhattisgarh. Satpal Singh Chhabra, identified as the mastermind behind the financial scheme, was arrested under the Prevention of Money‑Laundering Act, 2002 and presented before the PMLA Special Court in Raipur, where a five‑day custody order was issued.
The case builds on several FIRs registered by the state’s Anti‑Corruption Bureau, Economic Offences Wing and police, all pointing to a coordinated effort to divert DMF monies meant for mining‑affected communities. Over the five‑year period from FY 2019‑20 to FY 2023‑24, the foundations dispensed around ₹9,188.20 crore to district administrations.
According to the ED, a substantial portion of this capital was redirected toward supply‑centric projects, where prices were manipulated to generate commissions ranging from 25 to 50 percent of the contract’s base value. A large channel for these funds was the Chhattisgarh State Seed and Agricultural Development Corporation, through which agents allegedly extracted hefty fees before channeling money to selected vendors.
The illicit commissions were subsequently shared with senior government officials and influential individuals to procure work orders and accelerate payment releases. Chhabra’s role, as described by the agency, was that of a central financial coordinator: he earmarked lucrative supply‑based DMF contracts, allocated them to a preferred group of vendors, facilitated work order issuance, ensured prompt payment, and collected the syndicate’s share of commissions.
Searches carried out in September 2025 under PMLA Section 17(1) uncovered incriminating paperwork. Further analysis of banking transactions under Sections 17 and 50 confirmed that Chhabra received approximately ₹31 crore in illegal commissions. The proceeds of crime were traced to accounts belonging to his family members, Hindu Undivided Families and entities under his control, leading to his arrest under Section 19 of the PMLA.
The Enforcement Directorate has stated that the investigation into the broader DMF fraud continues, with additional suspects likely to be identified.