Misuse and misallocation of Chhattisgarh DMF funds

Raipur | Correspondent: In a shocking revelation, Chhattisgarh is facing scrutiny over the alleged misuse of the District Mineral Foundation (DMF) funds.

While the Enforcement Directorate (ED) recently arrested just two officials for irregularities related to DMF, a deeper issue has arisen — over the past nine years, crores of rupees planned for the welfare of mine-affected communities in Korba have reportedly been misallocated.

The DMF was established by the Modi government in March 2015 following amendments to the Mines and Minerals Act.

The foundation was created to support the development and welfare of people living in mining-affected areas, with funds contributed by mining companies.

However, allegations have surfaced that, in Korba, these funds have been diverted to projects unrelated to the original purpose, including the construction of an airport.

The management of DMF funds varies across districts.

For instance, Korba has designated only a three-kilometer radius from the mines as a “mine-affected area,” whereas Raigarh district has extended this boundary to 10 kilometers.

This inconsistency in defining affected areas has led to concerns about how funds are being distributed and whether the communities most impacted by mining activities are truly benefiting from the foundation’s resources.

With ongoing investigations, questions continue to rise about the accountability and transparency of DMF fund usage in Chhattisgarh.

Different rules highlight DMF mismanagement across districts

The management of the District Mineral Foundation (DMF) in Chhattisgarh has been inconsistent, with districts applying their own rules.

This lack of uniformity shows how the DMF, meant to support mining-affected communities, was handled without a clear, common approach.

For example, different districts registered their DMF trusts under different laws.

In Dantewada, it was registered under the Indian Registration Act of 1908, while Baloda Bazar used the Public Trust Act of 1952.

In Janjgir-Champa, the DMF was also registered under the Chhattisgarh Public Trust Act (1952), but in Korba, it was registered under the Indian Stamp Act of 1899.

This variation in how districts managed the DMF raises concerns about whether the funds were used properly for the benefit of mining-affected communities.

Funds intended for mining areas redirected to urban development

The District Mineral Foundation (DMF) was established to support mining-affected communities, but there is ongoing debate about how much these communities have actually benefited.

In Chhattisgarh, the Raman Singh government changed DMF rules in June 2016, broadening its focus to include various public welfare projects.

This allowed the state government to decide how the funds would be used.

As a result, districts were directed to spend part of their DMF funds on central government schemes, like the Pradhan Mantri Ujjwala Yojana.

However, many are questioning whether this spending truly helps those impacted by mining.

During Raman Singh’s last term, Korba district received Rs 887 crore through DMF.

Yet, 46% of this amount was used for urban development, such as building a multi-level parking structure, a town convention center, a bus stand, and beautifying Korba city.

A report from the Centre for Science and Environment (CSE) found that these projects mainly benefited 25% of the urban population, while 75% of the rural population, who are more affected by mining, did not receive significant support.

This uneven use of DMF resources raises concerns about whether the fund is meeting the needs of mining-affected communities in Chhattisgarh.

DMF funds misallocated for urban projects amid corruption claims

During Raman Singh’s tenure, significant amounts from the DMF funds in Korba and Korea districts were allocated for projects that did not directly benefit mine-affected communities.

For instance, several crores were spent to build an airport in Bilaspur under the guise of providing transport facilities.

Additionally, Rs 43 crore was used for a multi-level parking lot and convention center in Korba, and even a swimming pool was constructed using DMF money.

When the Bhupesh Baghel government took office in December 2018, it halted DMF expenditures and made collectors the chairpersons instead of the ministers in charge.

However, once spending resumed, reports of corruption emerged.

Questions were raised in the assembly about Rs 16.21 crore spent on training programs in Janjgir Champa during the COVID-19 pandemic.

Over two financial years, Rs 23 crore was allocated solely for training, and Rs 30 lakh was wasted on the Yuva Utsav in the same district.

Furthermore, crores were spent on beautifying Janjgir city, including Rs 8 crore based on a single quotation.

Former Congress party president Mohan Markam criticized his own government several times in the assembly for corruption in DMF spending.

Social activist Ramesh Kumar Sharma called for an investigation by the Enforcement Directorate (ED) into DMF fund irregularities dating back to 2015, suggesting that such an inquiry would reveal the extent of organized misuse of these funds.