ED Arrests Key Accused in Bharatmala Highway Compensation Fraud 2026

Raipur-New Delhi : The Directorate of Enforcement (ED), Raipur Zonal Office, has intensified its probe into the alleged Bharatmala Highway Land Acquisition Compensation Fraud by arresting Jai Prakash Gandhi, a resident of Abhanpur in Chhattisgarh’s Raipur district. The arrest was made on June 3, 2026, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The case is linked to alleged large-scale irregularities in compensation payments for land acquired under the ambitious Raipur–Visakhapatnam Economic Corridor Project, a key component of the Bharatmala Pariyojana.

Fraudulent Land Transactions Under Scanner

According to ED officials, the investigation was initiated on the basis of an FIR registered by the Anti-Corruption Bureau/Economic Offences Wing (ACB/EOW), Chhattisgarh. The FIR alleged manipulation and fraud in the disbursement of compensation to landowners whose properties were acquired for the national highway project.

ED investigations have revealed that Jai Prakash Gandhi, allegedly in collusion with family members and certain public officials, acquired land falling within the notified highway alignment area. Investigators claim that the land was subsequently divided into multiple plots measuring less than 500 square metres.

Authorities believe the fragmentation was deliberately carried out to exploit compensation norms and obtain significantly higher payouts from the National Highways Authority of India (NHAI).

Compensation Inflated from Lakhs to Crores

Investigators have uncovered what they describe as a carefully planned scheme to secure inflated compensation.

According to ED findings, Gandhi and his family members allegedly received compensation amounting to approximately ₹9.83 crore, whereas the legally admissible compensation for the land was estimated at only ₹56.76 lakh.

The agency estimates that the fraudulent transactions generated Proceeds of Crime (PoC) worth nearly ₹9.27 crore, making it one of the most significant land compensation fraud cases currently under investigation in the state.

Money Allegedly Routed Through Investments

The Enforcement Directorate has further alleged that the illegally obtained funds were subsequently layered and integrated into the financial system through various investment channels.

Investigators have identified investments in:

• Shares and equity instruments
• Mutual fund schemes
• Financial portfolios
• Other investment vehicles

Such transactions are being examined as part of the money laundering investigation to determine how the alleged proceeds were concealed and converted into legitimate-looking assets.

Earlier Searches Yielded Key Evidence

As part of the ongoing probe, ED conducted extensive search operations on April 28, 2026, at multiple locations across Raipur, Abhanpur, and Dhamtari districts.

During these searches, officials reportedly recovered and seized:

• Incriminating documents
• Digital storage devices
• Property-related records
• Financial transaction details
• Evidence linked to compensation claims

The seized materials are believed to provide crucial insights into the alleged conspiracy and the network of beneficiaries involved.

Court Grants ED Custody

Following his arrest, Jai Prakash Gandhi was produced before the Special Court designated under the PMLA in Raipur.

The court granted the Enforcement Directorate three days of custodial interrogation, enabling investigators to question the accused regarding the flow of funds, involvement of associates, and the alleged manipulation of land records and compensation claims.

Role of Public Servants Under Examination

ED officials have indicated that the investigation is not limited to private beneficiaries alone. The agency is also examining the role of public servants, intermediaries, and other individuals who may have facilitated the alleged fraud.

Investigators are scrutinizing whether government officials played a role in approving land divisions, processing compensation files, or overlooking irregularities during the acquisition process.

Bharatmala Project and Public Interest Concerns

The Bharatmala Pariyojana is one of India’s largest highway infrastructure initiatives, aimed at improving road connectivity, boosting trade, and accelerating economic development across regions.

Cases involving alleged misuse of compensation mechanisms in such projects raise concerns about transparency and accountability in public infrastructure development.

Officials believe that identifying and prosecuting those responsible is essential to protecting public funds and ensuring that compensation benefits reach legitimate landowners.

Investigation Continues

The Enforcement Directorate has stated that the probe remains ongoing and further arrests or legal action may follow based on evidence collected during the investigation.

Authorities are currently examining the involvement of additional beneficiaries, financial intermediaries, and officials suspected of participating in the alleged conspiracy. The agency is also tracing the money trail to identify any additional assets acquired using the proceeds of the alleged fraud.

The case is expected to remain under close scrutiny as investigators continue to unravel the full extent of the alleged compensation scam linked to the Bharatmala highway project.