Vendors picked for willingness to pay bribes, not merit: EOW in DMF charge sheet

EOW said ₹307 crore worth of contracts were handed to a select group of vendors allegedly chosen not on merit, but their willingness to pay bribes

RAIPUR: The Economic Offence Wing (EOW) on Tuesday filed its charge sheet in connection with irregularities in the District Mineral Fund (DMF) in Chhattisgarh’s Korba district, alleging that the officials did not select vendors on merit but their willingness to pay bribes.

The 6,000-page chargesheet mentioned nine names. (Representative file image)

Among the state government officials named in EOW’s 6,000-page charge sheet are former Korba collector Ranu Sahu, former deputy secretary at then chief minister Bhupesh Baghel’s office Saumya Chaurasia, and Maya Warrior, assistant commissioner at the Tribal Development Department.

The other accused include Suryakant Tiwari, an influential businessman in the coal industry, Maya Warrior, assistant commissioner, Tribal Development Dept and several vendors and contractors such as Sanjay Shende, Rishabh Soni, Manoj Kumar Dwivedi, Mukesh Agrawal, and Ashok Agrawal who are currently in jail in Raipur.

The EOW probe stems from a report submitted by the Enforcement Directorate (ED), Raipur, under the Prevention of Money Laundering Act (PMLA), which led to the registration of FIR on January 16, 2024.

EOW said the DMF was a trust fund established in mineral-rich districts to support welfare projects in areas affected by mining and was funded by contributions from mining companies. But the DMF became a source of illicit wealth for a powerful nexus of officials and vendors, the charge sheet said.

The EOW alleged that Chaurasia and Tiwari used their political influence to get Sahu posted as Korba collector and Maya Warrior in the tribal department.

“Together, they restructured DMF priorities to favour supply-based schemes such as training kits, sports goods, agricultural and medical equipment — sectors where inflated costs and kickbacks were easiest to engineer,” the charge sheet said.

“Funds were then funnelled to ’obedient’ vendors, with Sanjay Shende receiving ₹114 crore, Mr Rishabh Soni ₹54 crore, and others receiving tens of crores. The payments were allegedly facilitated through tenders pushed through departments like Education, Women & Child Development, Sports, and Tribal Welfare, as well as local Panchayats,” the chargesheet added.

In its investigation, EOW found that the DMF budget was approved at meetings of the executive committee and governing council, all of which were chaired by Sahu, who was arrested in 2023.

EOW claimed that the accused sidelined essential development projects in favour of those that could generate maximum personal gain.

“Detailed records show that between 2021–2023, DMF fund allocations were inflated or redirected to benefit these handpicked vendors, many of whom had no prior record in large-scale public procurement. Officials say quality control was bypassed, and many of the projects were either redundant or of substandard execution,” the charge sheet said.

EOW claimed the proceeds of crime from these contracts were distributed among bureaucrats, political figures, and intermediaries. “Large amounts of cash commissions were allegedly funnelled up the chain, even reaching senior figures in the then state government. The accused are also alleged to have acquired undisclosed assets and properties in their names and those of family members,” the charge sheet said.