IAS Officer Ranu Sahu Taken into ED Custody Over Rs 1,000 Crore DMF Scam

In a significant development, the Enforcement Directorate (ED) has arrested IAS officer Ranu Sahu in connection with the multi-crore District Mineral Fund (DMF) scam in Chhattisgarh. The arrest took place on October 17, just a day after the ED apprehended Maya Varier, the former Assistant Commissioner of the Tribal Development Department, who is also linked to the same case. Both officials are accused of being the key players in the corruption scheme, which involved siphoning off DMF funds meant for district development.

Corruption Allegations and Remand

The ED’s investigation into the scam revealed that senior government officials, in collusion with contractors, illegally diverted funds from the DMF, which had allocated over ₹1,000 crore for the development of Korba district. The funds, designated for the fiscal year 2022-23, were meant to support the growth and welfare of the district. However, a substantial portion of this money was allegedly embezzled by corrupt officials.

According to the ED, Ranu Sahu, who served as the District Collector of Korba from May 2021 to June 2022, played a central role in the scheme. Maya Varier, who held a prominent position in the Tribal Development Department during this period, is accused of facilitating the misappropriation of funds. Both have been remanded to ED custody—Sahu until October 22 and Varier until October 23—as the investigation progresses.

Illegal Commissions and Kickbacks

The scam is believed to have been carried out through an organized system of illegal commissions, where contractors paid kickbacks ranging from 25% to 40% of the contract value to government officials. These payments were made in cash and facilitated through fake entries by vendors and contractors. The ED is currently probing the extent of the scam, with further arrests likely in the coming days. High-ranking officials, including former ministers and political figures, are suspected of being involved.

Money Laundering Probe

The ED launched its money laundering probe after reviewing three FIRs registered by the Chhattisgarh Police, which highlighted massive corruption involving DMF funds. The Raipur Zonal Office of the ED is spearheading the investigation, which has uncovered evidence of widespread malfeasance within the district’s administrative framework. The agency is working to trace the flow of money and the assets accumulated by the accused.

Further Arrests Expected

Senior officials at the ED have indicated that more arrests are expected as the investigation continues. The scam has not only exposed significant gaps in the oversight of development funds but also highlighted the deep-rooted corruption among senior officials. The role of several high-profile political and administrative figures is under scrutiny, with new evidence expected to surface in the coming days.

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