India, Feb. 28 -- The Enforcement Directorate has found at least 121 mule accounts that were allegedly operated by forest officials of Kalahandi district to divert funds from various state government schemes, people familiar with the matter said.

ED's Bhubaneswar Zonal office launched the investigation following an Operational Analysis Report from Financial Intelligence Unit-India (FIU-IND) that indicated forest department officials used multiple mule accounts to divert funds meant for government schemes, It was estimated that the total diversion could be over Rs.2.5 crore.

On Friday morning, ED officials began search operations at the office and residences of forest department officials in Jaipatna Range under Kalahandi South division....