ED Arrests Satpal Singh Chabda in Chhattisgarh DMF Scam Involving Alleged ₹31 Crore Commission
The Enforcement Directorate (ED), Raipur Zonal Office, has arrested Satpal Singh Chabda in connection with an alleged scam involving the misappropriation of District Mineral Foundation (DMF) funds in Chhattisgarh. The agency alleges that Chabda received approximately ₹31 crore in illegal commissions linked to the suspected diversion of public funds.
Chabda was arrested on September 1, 2026, under the Prevention of Money Laundering Act (PMLA), 2002. He was produced before the Special Court (PMLA) in Raipur on the same day, and the court granted the ED five days of custody for further investigation.
The ED initiated its investigation based on multiple FIRs registered by the Anti-Corruption Bureau (ACB), Economic Offences Wing (EOW), Raipur, and Chhattisgarh Police concerning the alleged misuse of DMF funds.
DMF Trusts are established in mining-affected districts to support people and areas impacted by mining activities. However, according to the ED, a well-organised network involving public servants, intermediaries and vendors allegedly diverted a portion of these funds away from their intended purposes.
The investigation revealed that various districts in Chhattisgarh received approximately ₹9,188.20 crore through DMF Trusts between the financial years 2019–20 and 2023–24. The agency alleges that some of this money was channelled into supply-oriented projects, which allegedly offered opportunities for inflated pricing and the generation of illegal commissions.
A significant portion of the funds was reportedly routed through the Chhattisgarh Rajya Beej Evam Krishi Vikas Nigam, commonly known as Beej Nigam. According to the ED, agents and intermediaries allegedly charged commissions ranging from 25% to 50% of the base value of purchase orders issued to entities holding rate contracts. A substantial part of these commissions was allegedly passed on to public servants and influential individuals in exchange for work orders and the release of payments.
The ED has alleged that Chabda played a key role as an intermediary and financial coordinator within the network. He reportedly identified supply-based DMF projects capable of generating substantial commissions, allocated work among selected vendors on a percentage basis, facilitated the issuance of work orders and release of payments, and collected commissions for distribution among members of the alleged syndicate.
The agency had earlier conducted search operations in the case between September 3 and 4, 2025, under Section 17(1) of the PMLA, recovering several documents considered relevant to the investigation.
According to the ED, an analysis of banking transactions and statements recorded under Sections 17 and 50 of the PMLA indicated that Chabda allegedly received illegal commissions amounting to approximately ₹31 crore. The money was reportedly deposited into accounts belonging to him, his family members, Hindu Undivided Families (HUFs) and entities under his control.
The ED has identified the alleged commission payments as proceeds of crime and is continuing its investigation into the suspected diversion of DMF funds and the wider financial network involved.
News Source : Directorate of Enforcement (ED) – Official Press Release, Government of India
