ED seizes Rs 2.2 crore in raids linked to Arunachal highway compensation scam

The Enforcement Directorate has seized Rs 2.2 crore in cash after conducting search operations at multiple locations in Arunachal Pradesh in connection with the Trans Arunachal Highway land compensation scam, officials said.

The searches were carried out under the Prevention of Money Laundering Act in a case involving large-scale irregularities in the assessment, certification, and disbursement of compensation for land acquisition.

According to the ED, the alleged scam led to a loss of about Rs 44 crore to the state exchequer.

The case relates to the Trans Arunachal Highway Potin Bopi project, which spans 157.70 kilometres and is divided into the Yachuli, Ziro, and Raga sectors. The investigation has revealed alleged collusion between public servants and private beneficiaries, resulting in the generation and laundering of proceeds of crime.

The ED said the former Deputy Commissioner of Ziro had initially prepared a compensation estimate of Rs 289.40 crore for the entire stretch. The amount was later frozen at Rs 198.56 crore during a state-level meeting. However, during the disbursement process, funds were allegedly diverted to savings accounts, and cheques were issued to fake and ineligible beneficiaries, causing an estimated loss of around Rs 44 crore.

Officials said those involved abused their official positions by preparing and certifying inflated and fictitious assessments, particularly in the Yazali sector. The probe found that non-existent structures and ineligible beneficiaries were deliberately included to enable illegal payouts.

Searches were conducted at six residential premises linked to officials and private beneficiaries across Itanagar, Likabali near Dibrugarh, and Aalo near the Mechuka China border. Cash worth Rs 2.2 crore was recovered from the premises of one alleged fake beneficiary. Further investigation is underway.