Itanagar, Feb 9 (IANS) The Enforcement Directorate (ED) conducted search operations at six residential premises in Arunachal Pradesh and Assam under the provisions of the Prevention of Money Laundering Act (PMLA) in connection with the Trans-Arunachal Highway land compensation scam, an official statement said on Monday.
The searches were carried out on Friday by the ED’s Itanagar unit at six locations across the two Northeastern states. Of these, four premises are located in and around Itanagar, one at Likhabali (near Dibrugarh in Assam) and one at Aalo, close to the Mechuka-China border in Arunachal Pradesh.
According to ED, the search locations spanned from western to eastern Arunachal Pradesh, covering border-adjacent areas and difficult hill terrain, including remote and sensitive locations, thereby ensuring comprehensive geographic coverage of the investigation, the central probe agency said.
During the search operations, the ED seized cash amounting to Rs 2.62 crore. Of this, Rs 2.40 crore was recovered from the residential premises of Likha Maj, a private beneficiary and key conduit, while Rs 22 lakh was seized from the residence of Tadar Babin, another private beneficiary.
Additionally, bank balances amounting to approximately Rs 1.77 crore pertaining to Tadar Babin and Bharat Lingu, former District Land Records and Settlement Officer (DLRSO), Ziro, have been frozen.
The ED statement said it also recovered incriminating documents and immovable property-related records suspected to have been acquired using misappropriated compensation funds. These were seized from the residential premises of Kemo Lollen, former Deputy Commissioner, Ziro, and his family members, as well as from Bharat Lingu (Ex-DLRSO, Ziro), Toko Taje (Junior Engineer, PWD) and Likha Soni (private beneficiary).
Earlier in the investigation, the ED had identified and frozen funds amounting to approximately Rs 3.95 crore lying in bank accounts, fixed deposits and recurring deposits linked to accused persons, including accounts connected with Kabak Bhatt (Junior Engineer, PWD) and Ms T & G Enterprises.
The probe further revealed that fixed deposits aggregating to approximately Rs 175 crore were opened out of government compensation funds without authorisation. Interest amounting to approximately Rs 2.79 crore generated from such deposits was allegedly diverted in violation of financial rules. Of this, Rs 21.57 lakh was transferred to the personal bank account of Kabak Bhatt.
The ED has already filed a charge sheet under the PMLA against Kabak Bhatt before the designated Special Court for the offence of money laundering. The investigation pertains to large-scale irregularities in the assessment and disbursement of land acquisition compensation under the Trans-Arunachal Highway (Potin–Bopi stretch from 0.00 km to 157.70 km) project undertaken for road upgradation. The stretch was administratively divided into Yachuli, Ziro and Raga sectors.
Investigators found that although a compensation estimate of about Rs 289.40 crore was initially proposed, it was later restricted to approximately Rs 188 crore. However, the disbursement was carried out in a non-transparent manner, allegedly enabling wrongful gains to private individuals.
Verification by the State Fact-Finding Committee revealed large-scale deviations between estimated, admissible and actual disbursed compensation. In the Yachuli sector, against admissible compensation of about Rs 38.18 crore, payments of approximately Rs 66.25 crore were made, resulting in excess disbursement of around Rs 28 crore.
Similar irregularities and excess disbursements were identified in the Ziro and Raga sectors. Overall, these irregularities resulted in a wrongful loss of approximately Rs 44.98 crore to the government exchequer.
The ED stated that proceeds of crime were generated through the creation of fictitious beneficiaries, manipulation of assessment records, diversion of government funds through unauthorised bank accounts and fixed deposits, and routing of funds through private individuals and entities.
Evidence also indicates payment of illegal gratification to public servants and subsequent layering of proceeds of crime through bank accounts, investments and acquisition of assets. Further investigation is underway.
--IANS
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