A whistleblower in Arunachal Pradesh has alleged a ₹2 crore scam linked to fraudulent compensation claims and illegal constructions in the Lower Dibang Valley, echoing the infamous Trans-Arunachal Highway (TAH) scam. The controversy centers around the Athunli Hydroelectric Project (HEP), where hundreds of “ghost settlements” have reportedly emerged to exploit land acquisition benefits under the RFCTLARR Act, 2013.
Fake Settlements Resurface Amid Hydropower Push
The Athunli HEP, a 680 MW project sanctioned in 2023, affects seven villages with around 240 genuine residents. However, since the October 2024 land acquisition notification, a surge in unauthorized concrete and semi-concrete structures has been reported—far exceeding the actual population. These constructions aim to inflate compensation claims, mirroring tactics used in the TAH scam, where over 700 illegal structures were erected between 2021 and 2023.
Administration Cracks Down, Locals Push Back
On February 4, 2025, the Dibang Valley Deputy Commissioner issued a notice declaring all post-October 2024 constructions ineligible for compensation. Despite this, Nadim Lombo, chairman of the Athunli Project Affected Peoples Committee (APAPC), defended the structures as a rightful response to inadequate communication and threatened to boycott the baseline survey unless demands were met.
A Threat to Arunachal’s Hydropower Vision
The scam poses a serious threat to Arunachal’s ambition of becoming a hydropower hub, as envisioned by Deputy CM Chowna Mein. If unchecked, such fraudulent claims could derail infrastructure projects and erode public trust in state-led development.
🔁 Share this article to raise awareness about governance challenges and the need for transparency in Arunachal’s infrastructure projects.
