₹2.2 Crore Cash Seized in Land Compensation Scam Case
The Enforcement Directorate (ED) on Friday conducted searches at multiple locations across Arunachal Pradesh as part of a money laundering investigation linked to alleged irregularities in the Trans-Arunachal Highway project. During the raids, officials seized around ₹2.2 crore in cash, sources confirmed.
The action forms part of an ongoing probe into suspected financial misconduct in land acquisition compensation related to a major highway stretch in the state.
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Searches Conducted Under PMLA
ED teams carried out searches under the Prevention of Money Laundering Act (PMLA) at a total of eight locations. These included six premises in Itanagar, along with one location each in Likabali in Lower Siang district and Aalo in West Siang district.
Officials said the raids targeted offices of the Deputy Commissioner, the District Land Revenue and Settlement Officer (DLRSO), and assessment officials. The agency also searched premises linked to private beneficiaries and intermediaries suspected to have played a role in the alleged scam.
Probe Linked to Trans-Arunachal Highway Project
The investigation centres on alleged irregularities in the assessment, certification, and disbursement of land acquisition compensation for the 157.70-kilometre Potin–Bopi stretch of the Trans-Arunachal Highway. The stretch covers the Yachuli, Ziro, and Raga sectors.
According to officials, the Deputy Commissioner of Ziro had initially assessed the compensation amount at ₹289.40 crore. However, a state-level meeting later capped the compensation at ₹198.56 crore.
Alleged Diversion of Public Funds
Despite the revised estimate, investigators found that the disbursement process involved serious financial irregularities. Officials alleged that a portion of the funds was diverted into personal savings accounts.
The probe also revealed that authorities issued cheques in the names of fictitious beneficiaries, leading to an estimated loss of ₹44 crore to the state exchequer. Investigators believe the diversion involved collusion between officials and private individuals.
Fake and Inflated Assessments Detected
ED officials said the investigation uncovered inflated and fabricated assessments of structures, particularly in the Yazali sector. These assessments reportedly included compensation claims for non-existent structures and ineligible beneficiaries.
Such practices allowed fraudulent claimants to receive compensation meant for legitimate landowners, officials added.
Cash Seized From Linked Premises
The ₹2.2 crore in cash seized during the raids was recovered from a premises linked to one of the alleged fake beneficiaries, according to officials. The agency believes the recovered cash represents proceeds of crime generated through the fraudulent compensation process.
The ED is now analysing financial records, bank transactions, and property documents to trace the full money trail and identify all individuals involved.
Investigation Ongoing
Officials said the probe remains at a crucial stage, and further action may follow based on evidence gathered during the searches. The agency is coordinating with other departments to verify land records, beneficiary lists, and assessment reports related to the project.
Authorities have reiterated that strict action will be taken against those found guilty of misusing public funds and manipulating compensation processes.
The case has once again highlighted concerns over transparency and accountability in large-scale infrastructure projects, particularly in ecologically and strategically sensitive regions like Arunachal Pradesh.
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