The Arunachal Pradesh government has started the recovery process of nearly ₹114 crore in the alleged Lada-Sarli Frontier Highway compensation scam. The move came after continuous pressure from activists and the East Kameng Social Welfare and Cultural Organisation (EKSWCO). Officials found major irregularities in land compensation payments linked to the highway project in East Kameng and Kurung Kumey districts. Investigators suspect fake beneficiaries, inflated land valuations, and fraudulent compensation claims.
Meanwhile, the Anti-Corruption Bureau (ACB) has arrested several people, suspended officials, and frozen assets worth around ₹9 crore. The Border Roads Organisation (BRO) now handles the project after delays and controversy affected construction work.
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Key Facts About the Case
- Project: Lada-Sarli Frontier Highway / Arunachal Frontier Highway (NH-913)
- Location: East Kameng and Kurung Kumey districts, Arunachal Pradesh
- Road Length: Around 125–126 km under Packages 1–5
- Total Compensation Approved: ₹241 crore
- Amount Released: ₹224 crore
- Estimated Scam Amount: ₹100–130 crore
- Recovery Amount Initiated: Around ₹114 crore
- Investigating Agency: Anti-Corruption Bureau (ACB)
- Assets Frozen So Far: ₹9 crore
- Current Executing Agency: Border Roads Organisation (BRO)
Government Starts Recovery Action
The Arunachal Pradesh government has accelerated action in the alleged compensation scam linked to the Lada-Sarli Frontier Highway project. Officials from the Land Department confirmed that they forwarded the recovery file to the chief secretary for approval.
Moreover, the recovery process reportedly covers nearly ₹114 crore. However, authorities have not yet disclosed the final amount publicly.
Activists and local organisations, especially EKSWCO, consistently demanded strict action in the case. As a result, the government intensified its response and pushed forward the recovery proceedings.
Allegations of Fake Compensation Claims
The Lada-Sarli Frontier Highway forms a major part of the Arunachal Frontier Highway project under NH-913. The highway connects remote and strategically important regions of Arunachal Pradesh.
The Ministry of Road Transport and Highways sanctioned ₹241 crore for land compensation and administrative expenses. Later, authorities released ₹224 crore for the project.
However, investigators discovered several suspicious transactions. Reports indicate that officials and middlemen used fake beneficiaries, inflated property valuations, and forged claims to divert more than ₹100 crore.
Consequently, the alleged scam triggered widespread public criticism and demands for accountability.
ACB Arrests Officials and Brokers
The Anti-Corruption Bureau (ACB) has already arrested former East Kameng DLRSO Takam Kechak and several others in connection with the case.
In addition, authorities suspended around four to five officials during the investigation. Investigators also detained brokers who allegedly helped facilitate bribery and illegal compensation payments.
So far, the ACB has frozen and recovered assets worth nearly ₹9 crore. Meanwhile, investigators continue to examine financial records and land compensation documents.
BRO Takes Charge of Highway Project
The government recently transferred the project stretch to the Border Roads Organisation (BRO). Officials took this decision after delays affected re-tendering and compensation distribution.
Furthermore, authorities raised concerns over contractor concentration and slow progress in construction work. The BRO will now oversee the project’s execution and maintenance.
The project carries a construction deadline of three years along with five years of maintenance responsibility. Nevertheless, the compensation controversy continues to slow overall progress.
Strategic Importance for Northeast India
The Arunachal Frontier Highway holds major strategic importance for Northeast India. The project aims to improve road connectivity in remote border regions near China.
Additionally, the highway can strengthen defense logistics, trade movement, and economic development across Arunachal Pradesh. Therefore, delays and corruption allegations linked to the project have raised serious concerns among local residents and policymakers.
Questions and Answers
What is the Lada-Sarli Highway compensation scam?
The case involves alleged fraud in land compensation payments linked to the Lada-Sarli Frontier Highway project in Arunachal Pradesh.
How much money does the scam involve?
Investigators estimate the scam amount at around ₹100–130 crore.
How much recovery has the government initiated?
The government has reportedly started a recovery process worth nearly ₹114 crore.
Which agency investigates the case?
The Anti-Corruption Bureau (ACB) leads the investigation.
Who has been arrested so far?
The ACB arrested former East Kameng DLRSO Takam Kechak and several others.
Which agency now handles the highway construction?
The Border Roads Organisation (BRO) currently manages the project.
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