Itanagar, Feb 9 (NationPress) The Enforcement Directorate (ED) executed search operations at six residential locations in Arunachal Pradesh and Assam under the Prevention of Money Laundering Act (PMLA) concerning the Trans-Arunachal Highway land compensation scandal, as stated in an official announcement on Monday.

On Friday, the ED’s Itanagar unit conducted searches across six sites in the two Northeastern states. Among these, four sites were situated in and around Itanagar, one in Likhabali (near Dibrugarh in Assam), and another in Aalo, near the Mechuka-China border in Arunachal Pradesh.

The ED reported that the search sites extended from the western to the eastern regions of Arunachal Pradesh, encompassing border areas and challenging hill terrains, including remote and strategically sensitive locations, ensuring a thorough geographic scope for the investigation.

During these operations, the ED confiscated cash totaling Rs 2.62 crore. Of this amount, Rs 2.40 crore was recovered from the residence of Likha Maj, a private beneficiary and crucial intermediary, while Rs 22 lakh was seized from the home of Tadar Babin, another private beneficiary.

In addition, bank balances amounting to around Rs 1.77 crore linked to Tadar Babin and Bharat Lingu, the former District Land Records and Settlement Officer (DLRSO) of Ziro, have been frozen.

The ED’s disclosure indicated that it also retrieved incriminating documents and records related to immovable properties believed to have been acquired using misappropriated compensation funds. These were collected from the residences of Kemo Lollen, the former Deputy Commissioner of Ziro, and his family members, in addition to Bharat Lingu (Ex-DLRSO, Ziro), Toko Taje (Junior Engineer, PWD), and Likha Soni (private beneficiary).

Previously in the investigation, the ED had spotted and frozen funds nearing Rs 3.95 crore situated in bank accounts, fixed deposits, and recurring deposits associated with accused individuals, including accounts linked to Kabak Bhatt (Junior Engineer, PWD) and Ms T & G Enterprises.

The inquiry further uncovered that fixed deposits totaling about Rs 175 crore were established using government compensation funds without authorization. Interest accrued, amounting to around Rs 2.79 crore, was allegedly redirected in contravention of financial regulations. This included Rs 21.57 lakh transferred to the personal bank account of Kabak Bhatt.

The ED has already submitted a charge sheet under the PMLA against Kabak Bhatt to the designated Special Court for the crime of money laundering. The inquiry pertains to extensive irregularities in the evaluation and distribution of land acquisition compensation linked to the Trans-Arunachal Highway (Potin–Bopi stretch from 0.00 km to 157.70 km) project aimed at road enhancement. This stretch was administratively divided into the Yachuli, Ziro, and Raga sectors.

Investigators determined that while an initial compensation estimate of approximately Rs 289.40 crore was proposed, this was later limited to around Rs 188 crore. Nonetheless, the disbursement process was conducted in an opaque manner, allegedly facilitating unjust enrichment for private individuals.

Verification by the State Fact-Finding Committee revealed significant discrepancies between estimated, eligible, and actually disbursed compensation. In the Yachuli sector, against an admissible compensation of approximately Rs 38.18 crore, payments of around Rs 66.25 crore were made, leading to an excess disbursement of roughly Rs 28 crore.

Similar anomalies and excess payments were identified in the Ziro and Raga sectors. Overall, these irregularities resulted in a wrongful loss of about Rs 44.98 crore to the government treasury.

The ED stated that proceeds of crime were generated through the fabrication of fictitious beneficiaries, manipulation of assessment records, diversion of government funds through unauthorized bank accounts and fixed deposits, and routing of funds through private individuals and entities.

Evidence also suggests the payment of illegal kickbacks to public officials and the subsequent layering of crime proceeds through bank accounts, investments, and asset acquisition. Further investigation is ongoing.