BJP accuses Jharkhand government of ₹1,500- ₹2,000 crore fraud in DMFT funds meant for tribal communities, prompting high court scrutiny.

The Bharatiya Janata Party (BJP) on Wednesday accused the Jharkhand government of orchestrating a ₹1,500- ₹2,000 crore fraud in the District Mineral Foundation Trust (DMFT), a fund created to aid mining-affected and tribal communities.

The party alleged that money meant for the welfare of these regions was embezzled through inflated tenders , prompting the Jharkhand high court to seek an explanation from the state government.

“The Hemant Soren government was directly trying to loot the tribals,” said BJP spokesperson Tuhin Sinha, addressing a press conference. He claimed that the misuse of DMFT funds was first highlighted by BJP leader Babulal Marandi during a press conference in Ranchi on September 8.

Following this, the Jharkhand high court took suo motu cognisance and directed the state government to submit a detailed response within four weeks.

Reacting to the charges, spokesperson of the ruling Jharkhand Mukti Morcha (JMM) Manoj Pandey said if any embezzlement has been done, it’s the BJP MPs and MLAs who should be held responsible.

Sinha explained that DMFT was created under the Mines and Minerals (Development and Regulation) Amendment Act, 2015, to ensure that 10-30% of mining royalties were spent by district collectors in affected areas.

However, he alleged that funds were diverted and misused in several districts, including Bokaro, Dhanbad, Hazaribagh, and Singhbhum, regions that together account for nearly 40% of India’s mineral output.

Citing an audit by the Principal Accountant General (PAG), Sinha said large discrepancies were found in Bokaro district alone, where ₹631 crore was allocated for projects between 2024 and 2026, but ₹500 crore remains unaccounted for.

He alleged that the cost of generators, school materials, and other development purchases was inflated by up to ten times, with ₹631 crore in expenditure showing no traceable outcome. He added that the same pattern of inflated bills and unverified spending was found across several districts.

“It’s a matter of probe. If the court has sought details, the govt would reply. But if at all corruption has happened, it’s the local MPs and MLAs—who are members of the DMFT—should be held accountable, as every project is cleared by the DMFT committee. If any embezzlement of fund has been done in Bokaro district, the allegation points at the local Dhanbad MP who is from the BJP. There is no direct link between the DMFT and the chief minister, but there is a direct link with the MPs and MLAs. As for action against erring officials, this government has not spared even senior IAS officers when irregularities were found,” Pandey said.

The BJP spokesperson said that when the case was heard on October 13, the Jharkhand High Court observed that nearly 80% of expenses were ‘completely unaccounted for’, with ‘no actual purchases, only bills’.

He accused the ruling coalition, comprising the Jharkhand Mukti Morcha (JMM), Congress, and Rashtriya Janata Dal (RJD), of systemic corruption.

The District Mineral Foundation Trust (DMFT) was instituted under the Mines and Minerals (Development and Regulation) Amendment Act, 2015, to channel a portion of mining royalties back into the development of mining-affected areas, especially tribal and local communities. Jharkhand was expected to receive over ₹1,000 crore annually via DMFT.