Crores In Cash Seized In Raids Linked To Arunachal Highway Compensation Scam

The Enforcement Directorate (ED) has carried out search operations at multiple locations in Arunachal Pradesh in connection with the Trans-Arunachal Highway land compensation scam. Rs 2.2 crore was seized during the raids conducted under the Prevention of Money Laundering Act (PMLA), officials said.

The scam, involving large-scale irregularities in assessment, certification, and disbursement of compensation for land acquisition, resulted in a loss of about Rs 44 crore, according to the ED.

The Trans-Arunachal Highway (Potin-Bopi) project covers a total stretch of 157.70 km, administratively divided into Yachuli (0.00-43.635 km), Ziro (43.635-63.700 km), and Raga (63.700-149.440 km) sectors.

The ED investigation has revealed alleged collusion between public servants and private beneficiaries, leading to generation and laundering of proceeds of crime.

The probe found that the former Deputy Commissioner, Ziro, initially prepared a compensation estimate of Rs 289.40 crore for the entire Potin-Bopi stretch. However, the package was later frozen at Rs 198.56 crore during a state-level meeting. Despite this, during the disbursement process, substantial funds were allegedly diverted to savings accounts, while several cheques were issued to fake and ineligible beneficiaries, resulting in an estimated loss of around Rs 44 crore to the state exchequer.

The ED stated that officials involved in the process knowingly abused their official positions by preparing and certifying inflated and fictitious assessments of structures in the Yazali sector of the project. The investigation indicates that non-existent structures and ineligible beneficiaries were deliberately inserted to facilitate illegal payouts.

As part of the ongoing investigation, the ED conducted searches at six residential premises, including those linked to the then Deputy Commissioner, DLRSO, assessment officials and key private beneficiaries or conduits. The objective of the searches was to secure documentary and digital evidence and to identify movable and immovable assets acquired from the alleged proceeds of crime.

Of the six premises searched, four are located in and around Itanagar, one at Likabali near Dibrugarh, and one at Aalo, close to the Mechuka-China border. The ED noted that the searches covered remote, border-adjacent, and difficult hill terrain across western and eastern Arunachal Pradesh.

During the search operations, cash amounting to Rs 2.2 crore was recovered from the premises of one alleged fake beneficiary, the ED said.

Further investigation in the case is underway.