Keonjhar/Hatadihi: An investigation has been initiated by the Chief Secretary of the state regarding suspected irregularities within the Keonjhar District Mineral Foundation (DMF), as reported recently.

The Chief Secretary's office has requested a detailed report from the Planning and Convergence department. A formal letter (No12038/19.8.2025) has instructed the Keonjhar Collector to carry out an inquiry and submit findings accordingly.

The letter indicated that subsequent actions would be determined based on the report's findings. This inquiry follows a report published on August 13, highlighting issues such as ‘Tender invited before approval of funds’. The report raises concerns about inflated project costs and contracts signed prior to the necessary administrative approvals.

For instance, the DMF Trust Board had initially sanctioned Rs 12.89 crore for a project under the Fisheries department, but the estimated cost was suddenly increased to Rs 96.21 crore, leading to the invitation of tenders.

Additionally, agreements were executed even before the grant approval was secured. Another project for the Skill Development and Employment department was initially approved for Rs 50 lakh, but its cost was later escalated to Rs 12 crore, with agreements signed ahead of the necessary approvals.

In a similar vein, a project under the deputy director of Horticulture was first approved at Rs 32 crore, only to see its cost rise to Rs 85.83 crore. Allegations have surfaced that officials did not adhere to the 2019 guidelines set by the Chief Secretary, which stipulate that funds should be released in a 30-40-30 ratio. Instead, nearly half of the project funds were disbursed in a single installment to the implementing agency.