DMF 'scam': HC rejects bail to former Korba collector, ex-dy secy & accused

Raipur: The Chhattisgarh High Court on Wednesday rejected the bail applications of the accused in the District Mineral Fund (DMF) scam.

This includes former Korba district collector Ranu Sahu, Saumya Chaurasia, former deputy secretary to the then CM, NGO operator Manoj Kumar Dwivedi, and middleman Suryakant Tiwari.

The Single Bench of Justice Narendra Kumar Vyas, after examining the FIR and case diary materials, indicated the commission of offences under Sections 7 and 12 of the Prevention of Corruption Act. The court observed the apparent economic offences under the PC Act. Considering the records, the bench stated that the applicants' involvement in the alleged offences was evident, deeming it not a suitable case for granting regular bail. Consequently, all bail applications were dismissed.

The prosecution's case rests on an ECIR dated 11 Jan 2024, concerning alleged corruption in the utilisation of DMF funds in Korba district. Investigations said that suppliers purportedly paid substantial commissions to the applicant for securing DMF tenders.

The ex-collector of Korba, along with other co-accused, allegedly siphoned off funds, with a purported 40% of the total tender amount paid as commission to officials. Vendor Sanjay Shende reportedly admitted to securing tenders worth approx Rs 120-130 crore and paying around Rs 20 crore as commission to the applicant through her brother Piyush Sahu. Ashok Kumar Agrawal stated that a 20% commission was paid to Ranu Sahu for tender allocations.

Mukesh Kumar Agrawal also stated giving 15-20% of the tender amount, about Rs 5-6 crore, as commission to the former collector in exchange for tenders. Hrishabh Soni allegedly admitted to paying Rs 7 crore as a bribe to the applicant as commission. Manoj Dwivedi, also spoke of commission payments to the applicant.

The investigation revealed that the applicant allegedly collected illegal commissions exceeding Rs 55 crore solely from DMF-related tenders in Korba district.

The prosecution argued that such large-scale accumulation of illicit funds could not occur without the active support, administrative backing, and undue political influence of the applicant, in collusion with Saumya Chaurasia. Consequently, an FIR was registered against the applicant for offences under Sections 7 and 12 of the Prevention of Corruption Act, 1988 (as amended in 2018), read with Sections 420 and 120-B of the IPC. The applicant's earlier bail plea was dismissed by the Special Judge (PMLA)/First Additional Sessions Judge, Raipur, leading to the present appeal.

Saumya Chaurasia was described as a key beneficiary in a criminal conspiracy, allegedly directing subordinates and associates to demand a 40% commission from contractors involved in DMF-funded projects.

HC noted the applicants' silence in the bail petition regarding the source of income for the properties mentioned in the final report, indicating that the ACB/EOW collected certain material against them. The prosecution contended that the applicant actively participated in the syndicate, with the main accused Suryakant Tiwari allegedly acting under her instructions, and the extorted money was used to purchase properties.

The court deemed the submission regarding prosecution sanction "misconceived" and stated it "deserves to be rejected."

HC cited the SC's observations in the case of P. Chidambaram Vs. Directorate of Enforcement, emphasizing the grave nature of economic offences committed with deliberate design for personal profit, disregarding the community's interests and posing a serious threat to the country's financial health.