ED Raids Unravel Multi-Crore Compensation Scam in Arunachal Pradesh

The Enforcement Directorate conducted extensive raids in Arunachal Pradesh due to a Trans-Arunachal Highway compensation scam. The operation targeted public officials and private parties involved in the fraudulent disbursement of compensation funds. Investigators uncovered Rs 2.2 crore in cash from alleged fake beneficiaries as they secured crucial evidence.


Devdiscourse News Desk | Updated: 06-02-2026 10:28 IST | Created: 06-02-2026 10:28 IST
ED Raids Unravel Multi-Crore Compensation Scam in Arunachal Pradesh
ED raids in Arunachal Pradesh in Trans-Arunachal Highway compensation scam case (Photo/ED). Image Credit: ANI
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The Enforcement Directorate (ED) launched a significant crackdown in Arunachal Pradesh, targeting six locations, as part of its investigation into the Trans-Arunachal Highway compensation scam. This scandal highlights severe irregularities in evaluating, certifying, and disbursing land-acquisition compensation, implicating public officials and private individuals in laundering illicit funds.

Among the targeted sites were residential premises of key suspects, including a former Deputy Commissioner and other prominent officials, spanning both western and eastern regions of Arunachal Pradesh, notably including Itanagar and challenging border terrain near the Mechuka-China border. During these searches, officials reportedly discovered Rs 2.2 crore in cash at one fake beneficiary's residence.

The probe uncovered that the initial compensation estimate for a crucial highway stretch was drastically reduced from Rs 289.40 crore to Rs 198.56 crore, yet significant funds were illicitly diverted. Investigations revealed deliberate manipulation by officials, who certified inflated assessments, channeling money to fraudulent beneficiaries and costing the exchequer roughly Rs 44 crore.

(With inputs from agencies.)

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