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Home Arunachal Pradesh

Strict action against those involved in Frontier Highway compensation scam: Arunachal Pradesh CM

Northeast NewsbyNortheast News
February 5, 2026
in Arunachal Pradesh
Pema khandu
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Itanagar: Arunachal Pradesh Chief Minister Pema Khandu has asserted that all those involved in the alleged land compensation scam linked to the Lada–Sarli stretch of the Frontier Highway project would face stringent action, as multiple agencies continue to probe the irregularities.

Responding to a zero-hour discussion raised by lone Congress MLA Kumar Waii in the Assembly, Khandu said the government had intensified scrutiny of bank accounts of several individuals suspected to be involved in fraudulent claims.

“Those who have fraudulently taken money in the name of compensation will have to deposit the amount back into the government exchequer. They will not be spared and stringent action will be initiated against them,” the chief minister told the House.

Khandu said the state government had constituted a fact-finding committee on August 30 last year, which submitted its report on November 5. Based on its findings, the government suspended five officials and set up three separate committees to reverify genuine landowners for the highway stretch being constructed under five packages.

He informed the Assembly that the re-verification process began on January 14 and that the reports were expected to be submitted soon.

Acknowledging discrepancies, Khandu admitted that there had been both overestimation and underestimation in land compensation, adding that the errors would be corrected.

The chief minister also said the Union Ministry of Road Transport and Highways (MoRTH) had constituted an inter-ministerial committee to investigate the matter. In addition, the Enforcement Directorate (ED) has initiated a preliminary probe at its own level.

Highlighting the importance of the project, Khandu said the 1,840-km Frontier Highway, stretching from Bomdila in West Kameng district to Vijaynagar in Changlang district along the Indo-Bhutan and Indo-Myanmar borders, was sanctioned on March 19, 2018, following sustained efforts by the state government.

Of the total length, 586 km will be executed by private agencies, 536 km by the Border Roads Organisation (BRO), and the remaining 718 km by the National Highways and Infrastructure Development Corporation Limited (NHIDCL), he added.

Khandu said the case had also been handed over to the State Anti-Corruption Bureau (ACB), which found that compensation paid to affected landowners was on the higher side.

The ACB has so far arrested four persons in connection with the case and seized Rs 11.5 crore from their bank accounts.

“There are many more people involved in the scam,” he said, adding that further action would follow as the investigation progresses.

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The Lada–Sarli stretch of the highway has remained at the centre of controversy amid allegations of a multi-crore land compensation scam, triggering public outcry and political criticism.

Civil society groups, activists and local landowners have alleged that compensation intended for genuine landowners was misappropriated through inflated valuations and fraudulent claims, with total alleged irregularities pegged at about Rs 130 crore for the 125.55-km stretch.

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Tags: Arunachal Chief Minister Pema KhanduFrontier Highway project
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