ED-RPZO attaches properties worth Rs 21.47 cr in DMF scam

 

The Enforcement Directorate (ED), Raipur Zonal Office (ED-RPZO), has provisionally attached movable and immovable assets worth Rs 21.47 crore, including lands, residential properties, fixed deposits, and bank balances, through a Provisional Attachment Order dated December 9th, 2024. The properties are linked to prominent accused individuals, including IAS officer Ranu Sahu, Maya Varrier, Radheshyam Mirjha, Bhuvneshwar Singh Raj, Virendra Kumar Rathore, Bharosa Ram Thakur, Sanjay Shende, Manoj Kumar Dwivedi, Hrishabh Soni, and Rakesh Kumar Shukla. These individuals are being investigated under Prevention of Money Laundering Act (PMLA), 2002, for their alleged role in the District Mineral Fund scam. The ED initiated its probe based on three separate FIRs registered by Chhattisgarh Police under various sections of the Indian Penal Code (IPC), 1860. The FIRs alleged that government officials, in collusion with contractors, orchestrated a large-scale conspiracy to siphon off DMF funds. Contractors reportedly paid illegal commissions ranging from 15% to 42% of contract values to corrupt officials to fraudulently secure DMF contracts.

 

A senior official involved in the probe remarked, “The nexus between contractors and government officials reveals a systematic attempt to drain public funds intended for regional development. Such large-scale corruption cannot occur without high-level collusion.” The investigation uncovered a sophisticated network of financial irregularities. A significant portion of the funds credited to contractors’ bank accounts was either withdrawn in cash or transferred to shell entities disguised as vendors. These vendors falsely documented the transactions as purchases of goods, despite no actual trade taking place.“The cash flow traced through shell companies demonstrates the intricate laundering methods used to bribe officials and secure fraudulent contracts,” stated a source familiar with the case. The cash was used to bribe officials responsible for awarding DMF contracts and clearing vendor bills, while a portion was misappropriated for personal benefit by contractors.

 

During the investigation, searches were conducted at multiple premises linked to contractors, public servants, and their associates. These operations led to the seizure of unaccounted cash and jewellery worth Rs. 2.32 crore. “The seized assets were part of the illicit bribes used to manipulate contract awards and ensure bill approvals. The evidence is a direct reflection of the scam’s scale,” explained an enforcement officer handling the case. To date, the ED has quantified the Proceeds of Crime (POC) in the DMF scam at Rs. 90.35 crore. Of this, assets valued at Rs. 23.79 crore, including the latest attachment of Rs. 21.47 crore, have been provisionally attached, seized, or frozen under the PMLA. The agency has confirmed that further investigation is underway to identify additional beneficiaries of the scam and determine the full scope of the laundering operation.