THE JHARKHAND STORY NETWORK
Ranchi, February 26: The Income Tax Department’s probe into the alleged District Mineral Foundation Trust (DMFT) scam in Jharkhand has expanded significantly after the recovery of ₹51 lakh in cash, with fresh findings pointing to missing LED vans, inflated procurement, and suspicious payments worth crores of rupees in Bokaro district.
How the Crackdown Began: ₹51 Lakh Cash Seizure
The crackdown gained momentum after ₹51 lakh in unaccounted cash was seized last year from a vehicle in Gola. The cash was reportedly recovered from a car in which clerk Rajesh Pandey was present. Sources claim that Ashwini Mishra, alias Sonu Mishra, was also in the vehicle, though police records do not reflect his presence.
The cash recovery prompted the Income Tax Department’s Investigation Branch (Ranchi) to initiate raids on February 24 at 15 locations across Ranchi, Bokaro and Hazaribagh linked to DMFT-funded projects. Subsequent searches led to the seizure of documents suggesting large-scale financial irregularities, inflated bills and possible diversion of public funds.
16 LED Vans Purchased with DMFT Funds ‘Missing’
One of the most startling findings relates to 16 LED vans purchased for publicity purposes in Bokaro using DMFT funds. The vans were procured through Bokaro-based firm Prakash Xerox under Work Order No. 430. The company was paid ₹2.99 crore for the purchase.
However, during the ongoing investigation, the LED vans have reportedly been untraceable in the district. Investigating agencies suspect that the procurement process did not follow prescribed DMFT procedures and that the vans may have been purchased at rates higher than the market price.
Prakash Xerox owner Dev Prakash Rai is being questioned but has allegedly failed to produce complete documents related to the purchase and supply of the LED vans.
Documents also indicate that around ₹10 crore was paid from DMFT funds to Prakash Xerox. The owner is reportedly unable to provide accurate details of his income and the utilisation of the funds.
School Furniture Supplies Also Under Scanner
Before supplying LED vans, Prakash Xerox reportedly supplied benches, desks and bunk beds to schools and hostels across Bokaro district. Over ₹4 crore was paid for these supplies.
Records show that the company supplied 30 bunk beds to a hostel run by Madrasa Hanifia in Chas block. However, documents mention payment for 50 bunk beds to the Archery and Athletics Training Centre in the same block.
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Supplies were also reportedly made to Kasturba Gandhi Residential Schools in Gomia and Jaridih, as well as schools in Chandankiyari, Nawadih, Petarwar, Kasmar, Chas and Bokaro Steel City. Payments were shown for the supply of 25 to 50 bunk beds at various institutions.
Investigators are verifying whether the materials were actually delivered as claimed.
₹40 Crore ‘Bala Painting’ Expenditure Raises Red Flags
Another major finding relates to an alleged expenditure of ₹40 crore on “Bala paintings” in Bokaro district. Documents recovered during raids at Trinetra Enterprises in Bokaro and Hazaribagh indicate that the amount was paid for painting work.
Income Tax officials consider such a high expenditure on painting in a single district suspicious and indicative of a larger scam.
A team of officials is currently questioning Ashwini Mishra, alias Sonu Mishra, in connection with these payments. According to sources, he has been unable to clearly identify the locations where the paintings were carried out.
High-Mast Light Projects and Inflated Procurement
The probe has also uncovered irregularities in high-mast light installations in Bokaro. During raids at Ranchi-based Diligent Services, documents showed that the firm installed over 180 high-mast lights under DMFT projects and received approximately ₹19 crore through nearly 10 work orders.
Preliminary findings suggest that high-mast lights and other materials may have been procured at rates ranging from five to 25 times the market price.
Investigators found evidence that suppliers allegedly withdrew excess payments through cash and cheques issued in fictitious names. In some cases, supplier signatures were authenticated under those names. Immediate withdrawals after payments were credited are being viewed as suspicious.
There are also indications that payments were made in certain cases without actual delivery of materials.
DMFT Scam in Perspective
The District Mineral Foundation Trust (DMFT) was set up to utilise funds collected from mining companies for the welfare of mining-affected communities. The funds are meant for critical sectors such as education, healthcare, drinking water, infrastructure and livelihood support.
Jharkhand, being a mineral-rich state, receives substantial DMFT funds. Any alleged misuse directly affects development in mining-affected districts like Bokaro.
The Income Tax Department is now examining procurement procedures, fund flow patterns, supplier accounts and work execution records to determine the scale of the alleged scam and fix accountability.
Raids that began earlier this week are continuing, and further disclosures are expected as scrutiny of seized documents and digital records progresses.
