Guwahati: Arunachal Pradesh is reportedly facing a resurgence of fraudulent land claims, with hundreds of illegal constructions emerging in Dibang Valley district, particularly around the Athunli Hydroelectric Project (HEP).

This scam echoes the multi-crore scandal that plagued the Trans-Arunachal Highway (TAH) project.

As per a report, the Athunli HEP, a 680 MW project being developed by Satluj Jal Vidyut Nigam LTD (SJVN), has become the latest battleground for fraudulent land claims. Opportunistic constructions, far exceeding the genuine population, have appeared in an attempt to exploit compensation policies under the RFCTLARR Act, 2013.

Systemic governance loopholes and the challenge of balancing development with transparency have been highlighted by the Athunli case. If left unchecked, such fraudulent claims threaten to derail Arunachal's hydropower ambitions and undermine public trust in state-led infrastructure projects.

The scam involves the creation of "ghost villages" – temporary or semi-permanent structures built to fraudulently claim compensation. As of March 21, 2025, reports indicate hundreds of illegal constructions have appeared in project-affected areas, echoing a similar scam that plagued the TAH project since 2021.

The Arunachal Pradesh government has been urged to take immediate action to address this issue and prevent further alleged fraudulent claims.