ED arrests Chhattisgarh man in Rs 10-crore Bharatmala compensation scam case

The Enforcement Directorate (ED) has arrested Jai Prakash Gandhi, a resident of Abhanpur in Chhattisgarh’s Raipur district, in connection with an alleged Rs 9.83-crore land acquisition compensation fraud linked to the Union government’s Bharatmala highway project. Gandhi was taken into custody on June 3 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

According to the ED, the money laundering investigation was prompted after an FIR was registered by the Chhattisgarh Anti-Corruption Bureau and Economic Offences Wing (ACB/EOW).

The case pertains to alleged large-scale irregularities in the disbursement of compensation for land acquired for the Raipur–Visakhapatnam Economic Corridor being developed under the Bharatmala Pariyojana.

“Investigation revealed that Jai Prakash Gandhi, in connivance with his family members and certain public servants, had acquired land falling within the notified highway alignment and subsequently fragmented the same into parcels measuring less than 500 square metres,” the ED said in a statement.

Investigators allege that the land was deliberately divided into smaller plots to exploit compensation provisions and claim enhanced payouts from the National Highways Authority of India (NHAI).

The financial probe agency further stated that the fragmentation was allegedly carried out "with the sole intention of claiming enhanced compensation" for the acquired land.

The agency has alleged that Gandhi and his family members received compensation of approximately Rs 9.83 crore, while the amount legitimately payable was only about Rs 56.76 lakh.

As a result, the ED estimates that proceeds of crime amounting to around Rs 9.27 crore were generated through the alleged fraud.

“It has been further revealed that by adopting the aforesaid fraudulent modus operandi, the accused and his family members received compensation amounting to approximately Rs. 9.83 Crore against a legitimately payable amount of only Rs. 56.76 Lakh,” the ED added.

The investigation has also indicated that the alleged proceeds of crime were subsequently routed through investments in shares, mutual funds and other financial instruments.

According to the agency, these investments were used to layer and integrate the funds into the financial system.

Earlier in the probe, the ED carried out search operations on April 28 at multiple premises in Raipur, Abhanpur and Dhamtari districts.

During the searches, officials recovered and seized documents, digital devices and other materials that the agency claims are linked to the fraudulent acquisition of compensation.

Following his arrest, Gandhi was produced before the Special PMLA Court in Raipur.

The court granted the ED three days’ custody of the accused for further questioning and investigation.

The agency said the probe remains underway and is examining the involvement of other individuals who may have benefited from the alleged scheme.

"Investigation in the matter is continuing and the role of other beneficiaries, intermediaries and public servants involved in the conspiracy is under examination," the ED stated.

Further action is expected as investigators analyse the evidence gathered during the course of the probe and trace the flow of funds linked to the alleged compensation fraud.

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