Itanagar, Feb 6: The Enforcement Directorate (ED) on Friday conducted raids at multiple locations across Arunachal Pradesh, seizing around ₹2.2 crore in cash as part of a money laundering probe linked to an alleged scam in the Trans-Arunachal Highway project, officials said.

Searches were carried out at six premises in Itanagar, and one each in Likabali (Lower Siang district) and Aalo (West Siang district) under the Prevention of Money Laundering Act (PMLA). The raids targeted offices of the Deputy Commissioner, District Land Revenue and Settlement Officer (DLRSO), assessment officials, as well as private beneficiaries and intermediaries.

The investigation pertains to irregularities in the assessment, certification, and disbursement of land acquisition compensation for the 157.70 km Potin-Bopi stretch covering Yachuli, Ziro, and Raga sectors. Initial compensation for the project, estimated at ₹289.40 crore by the Deputy Commissioner of Ziro, was later capped at ₹198.56 crore in a state-level meeting.

During disbursement, funds were allegedly diverted into personal savings accounts, and cheques were issued to fictitious beneficiaries, resulting in a loss of ₹44 crore to the state exchequer. Investigations revealed inflated and fake assessments of structures in the Yazali sector, including claims for non-existent structures and ineligible beneficiaries. The seized ₹2.2 crore in cash was recovered from a premises linked to one such fake beneficiary.