Chhattisgarh: Probe Ordered Into Misuse Of DMF Funds For Satrenga Tourism Development In Korba Amid Allegations Of Misallocation

Korba: The Union Mines Ministry's Additional Secretary has directed the Chhattisgarh Chief Secretary to investigate allegations of misuse of District Mineral Foundation (DMF) funds for the development of Satrenga, a tourist destination in Korba district.

Despite not being directly affected by coal mining, crores were spent on Satrenga Tourism Centre based on the district’s DMF council's recommendation. Environmental activist Laxmi Chauhan filed a complaint, alleging that the entire district was wrongly categorized as a coal mining-affected area, enabling the misallocation of funds to areas like Satrenga, which is not affected by mining activities.

The complaint highlights that while the DMF funds were intended for areas directly or indirectly impacted by mining, Satrenga—a tourism centre under the Chhattisgarh Tourism Board—was used for commercial purposes like boating, hotels, and resorts.

The original purpose for the funds was to create a training camp for villagers, but the facility was later repurposed as a resort. It raised questions about the legitimacy of using DMF funds for such projects.

Chauhan has demanded a comprehensive audit of the DMF spending, particularly in Korba, which has seen allegations of mismanagement and arbitrary expenditures since the law’s implementation.

Previous audits by the Comptroller and Auditor General (CAG) excluded Korba, and Chauhan has called for a detailed inquiry, citing irregularities and corruption.

The ED’s investigation into the DMF scam has revealed a large-scale fraud exceeding Rs 600 crore, with several officials, including former Korba Collector Ranu Sahu and Assistant Commissioner Maya Warrier, already jailed for their involvement.

Chauhan has also filed a petition in the High Court, seeking a thorough investigation into the misappropriation of funds and accountability for those responsible for the violation.