Arunachal CM warns of ‘iron-handed’ action in Frontier Highway land compensation scam

Arunachal Pradesh Chief Minister Pema Khandu on February 4 asserted that all those involved in the alleged land compensation scam linked to the Lada–Sarli stretch of the Frontier Highway project will be dealt with firmly, stating that no one will be spared irrespective of position or influence.

Responding to a zero-hour discussion raised by lone Congress MLA Kumar Waii in the Assembly, Khandu said bank accounts of several individuals suspected to be involved in the scam are under scrutiny. He made it clear that those who fraudulently received compensation money would be forced to return it to the government exchequer and would face stringent legal action.

The chief minister said the state government had constituted a fact-finding committee on August 30 last year, which submitted its report on November 5. Based on the committee’s findings, five officials were suspended and three separate committees were formed to reverify genuine landowners for the Lada–Sarli stretch, which is being executed under five different packages. The re-verification process began on January 14, and reports are expected to be submitted soon.

Admitting irregularities in the compensation process, Khandu said there had been cases of both overestimation and underestimation of land values, and assured the House that all discrepancies would be corrected. He also informed that the Union Ministry of Road Transport and Highways has constituted an inter-ministerial committee to investigate the matter, while the Enforcement Directorate has initiated a preliminary probe at its own level.

Providing details of the strategic Frontier Highway project, the chief minister said the 1,840-km road, running 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, after 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, and the remaining 718 km by the National Highways and Infrastructure Development Corporation Limited.

Khandu said the case has been handed over to the State Anti-Corruption Bureau, which found that compensation paid to affected landowners was on the higher side. The ACB has so far arrested four persons and seized Rs 11.5 crore from their bank accounts, while investigations indicate that many more individuals are involved in the scam.

Acknowledging that corruption continues to be a challenge in the state, the chief minister said it can only be eradicated through collective effort and strong institutional mechanisms. He pointed out that the Special Investigation Cell, constituted in 2005, arrested 142 officials between 2016 and 2025 after the BJP came to power, compared to around 20 arrests between 2005 and 2015.

“Our vision is to make Arunachal Pradesh corruption-free. We are working as Team Arunachal and strengthening the Anti-Corruption Bureau to deal with corruption with iron hands,” Khandu said.

The Lada–Sarli stretch of the Frontier Highway has remained at the centre of controversy amid allegations of a multi-crore land compensation scam, triggering public outrage and political criticism. Civil society groups, activists and local landowners have alleged that compensation meant for genuine landowners was siphoned off through inflated valuations and fraudulent claims, with the total alleged irregularities estimated at around Rs 130 crore for the 125.55-km stretch.