Keonjhar/Hatadihi: The state Chief Secretary has ordered an investigation into alleged irregularities in Keonjhar District Mineral Foundation (DMF), according to a report.
The office of the Chief Secretary has sought the report in this regard from the state Planning and Convergence department. In a letter (No12038/19.8.2025), the department has directed the Keonjhar Collector to conduct an inquiry into the issue and submit a report to it.
The letter noted that further action would be taken after receipt of the report. The action came after Odisha’s only homegrown English daily Orissa POST published a report ‘Tender invited before approval of funds’ in its issue dated August 13. The controversy centers around inflated project costs and agreements signed before approval of administrative grants.
Also Read: Probe starts into Keonjhar DMF fund irregularities
Notably, the DMF Trust Board had approved Rs 12.89 crore for a project under the Fisheries department. However, the estimate was raised abruptly to Rs 96.21 crore, and tenders were invited.
An agreement was also signed even before the approval of the grant. A separate project for the district Skill Development and Employment department was approved at Rs 50 lakh. The cost was later escalated to Rs 12 crore, with agreements signed prior to approval.
Similarly, another project under the deputy director of Horticulture was initially approved at Rs 32 crore. Its cost was later hiked to Rs 85.83 crore. Officials allegedly bypassed the 2019 guidelines of the Chief Secretary, which mandate the release of funds in a 30-40-30 ratio. Instead, nearly half of the project funds were released in a single installment to the implementing agency
