Raipur, Jun 4 (PTI) A man was arrested by Enforcement Directorate (ED) in connection with an alleged land acquisition compensation fraud linked to the Bharatmala highway project in Chhattisgarh, an official said on Thursday.

Jai Prakash Gandhi, a resident of Abhanpur in Raipur district, was arrested on Wednesday under Prevention of Money Laundering Act (PMLA), he added.

The money laundering investigation stems from an FIR registered by Chhattisgarh Anti-Corruption Bureau/Economic Offences Wing (ACB/EOW) regarding alleged irregularities in disbursement of compensation for land acquired for Raipur-Visakhapatnam Economic Corridor under the Bharatmala Pariyojana.

As per ED, Gandhi, in connivance with family members and certain public servants, acquired land falling within the notified highway alignment and subsequently fragmented it into plots measuring less than 500 square metres to claim higher compensation from the National Highways Authority of India (NHAI).

According to the agency, the accused and his family members received compensation of around Rs 9.83 crore against a legitimately payable amount of Rs 56.76 lakh, resulting in alleged proceeds of crime of approximately Rs 9.27 crore.

The agency further alleged the proceeds of crime were subsequently layered and integrated through investments in shares, mutual funds and other financial instruments.

The ED had earlier conducted searches at multiple premises in Raipur, Abhanpur and Dhamtari districts on April 28, during which documents, digital devices and other materials related to the case were seized.

A special PMLA court has remanded Gandhi in ED custody for three days, the official said.

The agency said further investigation is underway to ascertain the role of other beneficiaries, intermediaries and public servants allegedly involved in the conspiracy. PTI COR BNM

Land compensation fraud and money laundering allegations linked to highway acquisition triggered enforcement action under PMLA. Money laundering investigation arose from alleged irregularities in compensation disbursement for land acquired for the Raipur-Visakhapatnam Economic Corridor under the Bharatmala project. The allegations state that land within the notified highway alignment was acquired and then fragmented into smaller plots to claim enhanced compensation from the National Highways Authority of India. The accused, along with family members and certain public servants, is alleged to have received compensation far in excess of the amount legitimately payable, generating alleged proceeds of crime that were later layered through shares, mutual funds and other financial instruments.