NewsGate Press Network

The scam related to the alleged fictious compensation claims in connection with the mega Trans-Arunachal Highway had a spotlight firmly on it after Enforcement Directorate (ED) raided various locations in Arunachal Pradesh.

When the last reports came-in on Friday the 6th of February 2026, ED raids were conducted at 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 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).

The Trans-Arunachal Highway, passing through the entire length of the state, roughly divides Arunachal Pradesh state in two parts – the upper two-third in north and east and lower one-third.

At least 1811 km route already exists as national highway, and remaining are either greenfield or an upgrade of existing routes to national highway standard

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.

During the searches, cash amounting to ₹2.2 crore was recovered from the premises of one fake beneficiary.