Arunachal: Rise of Fake Settlements in Dibang Valley echoing the TAH scam
Arunachal Pradesh, with its vast hydropower potential exceeding 50,000 MW, is positioning itself as a key player in India’s renewable energy landscape.
ITANAGAR- Arunachal Pradesh is witnessing a resurgence of fraudulent land claims, as fake settlements emerge in Dibang Valley, echoing the multi-crore scam that plagued the Trans-Arunachal Highway (TAH) project. The Athunli Hydroelectric Project (HEP) has become the latest battleground, where opportunistic constructions—far exceeding the genuine population—have appeared in an attempt to exploit compensation policies under the RFCTLARR Act, 2013.
Much like the TAH scam, where over 700 illegal structures were erected before enforcement measures were tightened, the Athunli case highlights systemic governance loopholes and the persistent challenge of balancing development with transparency. If left unchecked, such fraudulent claims threaten to derail Arunachal’s hydropower ambitions while undermining public trust in state-led infrastructure projects.
In Arunachal Pradesh, a concerning trend of Fake Settlements popularly called it as “ghost villages”—temporary or semi-permanent structures built to fraudulently claim compensation—has resurfaced, particularly around the Athunli Hydroelectric Project (HEP) in Dibang Valley district. As of March 21, 2025, reports indicate hundreds of illegal constructions have appeared in project-affected areas, echoing a similar scam that plagued the Trans-Arunachal Highway (TAH) project since 2021.
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Arunachal Pradesh, with its vast hydropower potential exceeding 50,000 MW, is positioning itself as a key player in India’s renewable energy landscape.
The Athunli HEP, a 680 MW project in Dibang Valley, is sanctioned in August 2023 via an agreement with Sutlej Jal Vidyut Nigam (SJVN). It affects seven villages—Athunli, Malinye, Apanli, Sunli, Gunli, New Echanli, and Chiya—home to approximately 40 families (240 residents).
However, the promise of compensation under the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement (RFCTLARR) Act, 2013, has triggered opportunistic construction, dubbed “ghost villages,” aimed at exploiting land acquisition processes.
This issue mirrors a historical precedent along the Trans-Arunachal Highway, where over 700 illegal structures emerged between 2021 and 2023, leading to a multi-crore scam and subsequent arrests. The recurrence of this tactic in 2025 underscores systemic challenges in managing large-scale infrastructure projects.
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According to media reports, hundreds of concrete and semi-concrete structures have been built in the Athunli HEP-affected areas since late 2024. These far exceed the number of genuine residents, suggesting a coordinated effort to inflate compensation claims.
These construction surged after the preliminary land acquisition notification on October 4, 2024, despite a subsequent notice on February 4, 2025, banning such activities.
Nadim Lombo, chairman of the Athunli Project Affected Peoples Committee (APAPC), defends the constructions as a “right” to offset property losses, arguing that the administration failed to adequately inform villagers of the October 2024 cut-off. He has also threatened to boycott the baseline survey unless compensation is assured or the project is scrapped.
On February 4, 2025, Dibang Valley Deputy Commissioner Pagli Sora issued a notice under Section 11(4) of the RFCTLARR Act, declaring post-October 4, 2024, constructions ineligible for compensation. This aims to deter further illegal building.
Fraudulent claims could drain state funds, undermining hydropower projects critical to Arunachal Pradesh’s goal of becoming a revenue powerhouse, as emphasized by Deputy Chief Minister Chowna Mein’s “decade of hydropower” vision.
