New Delhi/Itanagar, April 1 (NationPress) On Wednesday, the Enforcement Directorate (ED) announced that it has submitted a supplementary prosecution complaint (SPC) to a court in Arunachal Pradesh under the Prevention of Money Laundering Act (PMLA), 2002. This complaint is in relation to a Rs 44.98 crore land acquisition compensation scandal associated with the Trans-Arunachal Highway (TAH), which allegedly involves the fraudulent diversion of government funds.

The Trans-Arunachal Highway is a significant project, spanning 2,407 km and connecting 16 districts in Arunachal Pradesh, primarily serving as National Highway-13 (NH-13).

The SPC was filed by the ED’s Itanagar Sub-Zonal Office at the Special Court (PMLA), Yupia, Arunachal Pradesh, as part of the ongoing investigation into the scam.

The filing aims to document additional evidence, broaden the financial trail, and uncover the involvement of more individuals accused of money laundering.

The ED's investigation was triggered by an FIR registered by the Special Investigation Cell (Vigilance), Itanagar, along with a chargesheet filed under various sections of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988, both of which are classified as scheduled offences under the PMLA.

The inquiry has revealed a well-coordinated criminal conspiracy allegedly orchestrated by public officials, including senior district officials, in collusion with private individuals to illegally divert government compensation funds designated for the TAH project (specifically the Potin-Bopi stretch).

Evidence indicates that the accused allegedly enabled the misappropriation of funds by creating fictitious beneficiaries, altering official records, and fabricating bills. This was followed by the routing and layering of funds across several bank accounts and intermediary entities to disguise the proceeds of crime as legitimate assets.

Prior to this, on March 12, 2024, the ED filed a prosecution complaint against Kabak Bhatt and others, which was acknowledged by the Special Court (PMLA), Yupia, on March 14, 2024.

Subsequent investigations, including searches conducted on February 6, 2026, under Section 17 of the PMLA and analyses of bank records, revealed additional proceeds of crime and the involvement of more accused parties.

The supplementary complaint lists additional accused individuals, such as Kemo Lollen (then Deputy Commissioner, Ziro), Bharat Lingu (former District Land Revenue and Settlement Officer, Ziro), Toko Taje (Junior Engineer), Kabak Bhatt (Junior Engineer), and Reddy Bei (Range Forest Officer), who are alleged to have played roles in the assessment, approval, and facilitation of compensation payments.

Fraudulent beneficiaries identified include Likha Maj and Tadar Babin, who are alleged to have received significant compensation amounts without any lawful claims and to have taken part in the withdrawal and use of these funds. The role of Mojie Lollen as an intermediary facilitating fund transfers has also been detailed in the complaint.

The ED’s investigation has revealed that substantial government funds were misappropriated through multiple bank accounts. Specifically, Rs 9.44 crore was funneled through Likha Maj's account, while Rs 5.47 crore was disbursed to Tadar Babin without lawful entitlement.

The financial trail indicates layering through entities such as M/s T & G Enterprises and M/s Tenzin Enterprise. Statements obtained under Section 50 of the PMLA are said to corroborate documentary and financial evidence, including admissions regarding the receipt of compensation without entitlement and the movement of funds on directives from public officials.

The complaint also highlights unauthorized and premature diversion of funds, such as the transfer of Rs 9.44 crore to fictitious beneficiaries via multiple cheque instruments prior to the official initiation of compensation disbursement.

Throughout the investigation, the ED has undertaken actions to secure the proceeds of crime, including the seizure of cash totaling Rs 2.40 crore and Rs 22 lakh, freezing bank balances amounting to approximately Rs 1.19 crore, and previously freezing funds worth about Rs 3.95 crore across various accounts and deposits.

The agency has also provisionally attached immovable assets estimated at Rs 2.37 crore under the PMLA provisions.

As a result, the cumulative value of proceeds of crime secured through attachment, seizure, and freezing in this case stands at approximately Rs 10.13 crore.

The case is currently under the jurisdiction of the Special Court (PMLA), and investigations are ongoing.