ED conducts raids in Trans-Arunachal highway compensation scam

New Delhi, Feb 6: The Enforcement Directorate (ED) is conducting search operations at multiple locations in connection with the Trans-Arunachal Highway compensation scam.
The case relates to large-scale irregularities in the assessment, certification and disbursement of land acquisition compensation, involving public servants and private beneficiaries. These irregularities allegedly led to the generation and laundering of proceeds of crime.
The project covered a stretch of 157.70 km and was administratively divided into three sectors: Yachuli (0.00–43.635 km), Ziro (43.635–63.700 km) and Raga (63.700–149.440 km).
During the investigation, it was found that the then Deputy Commissioner, Ziro, initially prepared a compensation estimate of ₹289.40 crore for the entire Potin–Bopi stretch. However, during a State-level meeting, the compensation package was frozen and restricted to ₹198.56 crore.
Despite this, during the disbursement process, large amounts of funds were allegedly diverted to savings accounts, and several cheques were issued to fake beneficiaries, resulting in an approximate loss of ₹44 crore to the exchequer.
The investigation has revealed that the officials involved knowingly and intentionally abused their official positions by preparing and certifying inflated and fictitious assessments of structures in the Yazali sector of the Trans-Arunachal Highway (Potin–Bopi) project. They allegedly facilitated the inclusion of non-existent structures and ineligible beneficiaries.
As part of the ongoing probe, searches are being conducted at six residential premises, including those of the then Deputy Commissioner, DLRSO, assessment officials, and key private beneficiaries and conduits. The objective is to secure documentary and digital evidence and identify movable and immovable assets acquired from the proceeds of crime.
Of the six premises, four are located in and around Itanagar, one at Likhabali (near Dibrugarh), and one at Aalo, close to the Mechuka–China border. The search locations span from western to eastern Arunachal Pradesh, covering border-adjacent areas and difficult hill terrain, including remote and sensitive locations.
During the searches, cash amounting to ₹2.2 crore was recovered from the premises of one fake beneficiary.
Further investigation in the matter is ongoing.