Itanagar, August 14: The Enforcement Directorate (ED) has taken significant action in connection with the alleged compensation scam linked to the much-discussed Lada-Sarli Frontier Highway project in Arunachal Pradesh. The ED’s Itanagar sub-zonal office has provisionally attached two immovable properties valued at ₹2.69 crore under the Prevention of Money Laundering Act (PMLA) 2002, belonging to Nyakpo Yangfo.
According to the ED, this action is related to irregularities in the assessment and distribution of land acquisition compensation under packages 4 and 5 of the Lada-Sarli Frontier Highway project. The attached properties include 7,950 square meters of land in Taraso village, located in Papum Pare district, valued at approximately ₹1.59 crore. Additionally, 3,440 square meters of land and two fish ponds in Chessa village, worth around ₹1.10 crore, have also been seized.
The investigation was initiated based on an FIR registered by the Arunachal Pradesh Anti-Corruption Bureau in Itanagar. The FIR alleges widespread irregularities in the assessment, approval, and payment of land acquisition compensation, implicating several government officials and private beneficiaries in the misuse of public funds.
The investigation revealed that Nyakpo Yangfo was among the beneficiaries of the project, receiving a total compensation of ₹3.36 crore under packages IV and V. However, a beneficiary-wise comparative report prepared during the fact-finding committee and re-verification process indicated that he received approximately ₹3.25 crore in excess or ineligible compensation.
The ED stated that this additional payment was made under the names of bamboo, other common trees, and an SPT building, which were not found on-site during physical verification.
Moreover, it was discovered that on June 6, 2025, just a day after receiving ₹1.89 crore in compensation, Nyakpo Yangfo purchased 7,950 square meters of land in Taraso village for ₹1.59 crore. Similarly, after receiving an additional ₹1.46 crore in compensation on July 22, 2025, he bought land and two fish ponds in Chessa village for ₹1.10 crore the following day.
The ED claims that a direct and clear financial link has been established between the alleged proceeds of crime and the purchase of these properties. Based on this, the properties valued at ₹2.69 crore have been provisionally attached under the PMLA.
The agency has also stated that the investigation into the roles of other beneficiaries involved in the case, who allegedly received excess or ineligible compensation, is ongoing. Other beneficiaries and relevant officials are also included in the scope of the investigation.
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