NEW DELHI– The Enforcement Directorate (ED) has launched a money laundering investigation into allegation of misappropriation of compensation funds provided by the government to those affected by the Trans Arunachal Highway (TAH) Project being built in the north eastern state of Arunachal Pradesh.
The about 2,396 km long road project aims to connect 16 districts of the state running from Tawang in western Arunachal to Kanubari in Longding district in the south-eastern part of the state.
The federal probe agency said in a statement that it carried out two search operations on September 20 in the state following which it froze, under the criminal sections of the Prevention of Money Laundering Act (PMLA), fixed deposits worth Rs 3.95 crore.
The ED said that the investigation has found that several fake beneficiaries were created by some government officials in connivance with private persons, in order to gain themselves and cause loss to the exchequer.
During investigation it was also revealed that a part of the proceeds of crime deposited by the accused persons was remitted through multiple bank accounts and FDs.
This money laundering case came to light in February 2019 after an FIR was filed by the Vigilance Wing of the state police. In which it is alleged that the government officials conspired with some private persons and misappropriated funds for the affected persons/beneficiaries of the Trans Arunachal Highway Project.