Raipur, Oct. 31 -- The Enforcement Directorate has provisionally attached assets worth Rs 31.70 crore and filed a supplementary prosecution complaint against 17 persons in connection with the alleged misappropriation of District Mineral Foundation (DMF) funds in Chhattisgarh, officials said on Saturday.
The ED's Raipur Zonal Office issued a provisional attachment order on October 29 under the Prevention of Money Laundering Act (PMLA), 2002, and filed the supplementary prosecution complaint before the Special Court (PMLA) here on October 30, the agency said in a statement. The complaint names Satpal Singh Chabda, Mandip Chawla and 15 others, it added.
The alleged scam took place during the previous Bhupesh Baghel-led Congress government in the state.
A money-laundering investigation was initiated on the basis of an FIR registered by the state's Anti-Corruption Bureau/Economic Offences Wing (ACB/EOW), Raipur, under the Prevention of Corruption Act and the Indian Penal Code.
Subsequently, FIRs registered by Chhattisgarh police in Kanker district and the ACB/EOW were also incorporated into the investigation, the agency said.
The ED investigation has revealed that DMF funds were allegedly siphoned off by an organised syndicate comprising public servants and agents or liaisoners, it said.
DMF is a trust funded by contributions from mining leaseholders and established in districts across the state to undertake welfare and development activities for people and areas affected by mining-related operations.
"The syndicate allegedly manipulated the allocation and utilisation of DMF funds by favouring supply-oriented works involving inflated procurement costs and payment of substantial illegal commissions. Agents and liaisoners collected commissions ranging from 25 to 50 per cent of the base value of purchase orders issued to entities holding rate contracts," it said.
The commissions were collected both in cash and through banking channels and subsequently routed through various entities and accounts to conceal their origins. A substantial portion of these commissions was allegedly passed on to public servants and other influential persons in exchange for allocation of DMF-funded works, issuance of purchase orders and release of payments, it said.
The investigation also revealed that similar commissions were collected by the agents in connection with procurement undertaken through Chhattisgarh Rajya Beej Evam Krishi Vikas Nigam (Beej Nigam) using funds other than those of the DMF, the agency said.
The ED identified Chabda, who was arrested on September 1 this year, as one of the main liaisoners and financial coordinators of the alleged syndicate.
He allegedly facilitated the allocation of supply-oriented works to selected vendors, issuance of purchase orders, release of payments and collection and distribution of illegal commissions, the agency said.
The agency has quantified the proceeds of crime attributable to the accused persons in the present action at around Rs 35 crore, against which assets worth Rs 31.70 crore have been attached, it said.
So far, four persons, including Chhattisgarh-cadre IAS officer Ranu Sahu, have been arrested in the case, while assets worth around Rs 50 crore have been attached, the ED said.
Published by HT Digital Content Services with permission from Millennium Post.