ED Arrests Top Officials in Chhattisgarh DMF Scam

The Enforcement Directorate has arrested IAS officer Ranu Sahu and another official in connection with the Chhattisgarh District Mineral Fund scam. The two are accused of collecting illegal commissions from vendors, with investigations revealing kickbacks amounting to 25-40% of contract values.

The Enforcement Directorate (ED) on Thursday detained IAS officer Ranu Sahu regarding the District Mineral Fund (DMF) scam in Chhattisgarh. Sahu's arrest comes two days after another official, Maya Varier, was implicated in the same case. Both have been remanded to ED custody until October 22 by a special court.

According to the ED, Sahu and Varier are the principal accused parties in the DMF scam. The investigation stems from First Information Reports (FIRs) filed by the Chhattisgarh Police under various sections of the Indian Penal Code concerning the misuse of state funds by DMF contractors, allegedly in concert with government officials and political figures.

In this scam, a large percentage of the District Mineral Fund was misappropriated through corrupt practices. Sahu was the district collector of Korba, Chhattisgarh, between May 2021 and June 2022, while Varier served as the Assistant Commissioner of the Tribal Development Department from August 2021 to March 2023. The ED claims during their tenure, a systematic collection of illegal commissions from vendors was operated.

The investigation has uncovered that contractors paid substantial commissions—estimated between 25 to 40 percent of contract values—to secure dealings. These kickbacks were reportedly generated through fabricated accounts set up by vendors and contractors.

Although the exact 'Proceeds of Crime' are not detailed in the FIRs, the ED's review suggests that the DMF Fund meant for Korba alone exceeded Rs 1,000 crore. The prevalent commission rates imply that irregular earnings could amount to hundreds of crores. Prior search operations by the ED in connection to the case have led to the confiscation of documents, digital evidence, cash, and jewelry worth Rs 2.32 crore.

(With inputs from agencies.)