In a startling revelation before the Supreme Court, the Union Government has alleged that a man from Arunachal Pradesh attempted to fraudulently claim ₹210 crore in compensation by forging powers of attorney for 102 landowners whose properties were acquired for defense infrastructure near the India-China border.
Centre Flags Massive Compensation Fraud
The accused, identified as Dagli Riba, allegedly submitted forged and unregistered powers of attorney to a reference court, seeking enhanced compensation for land acquired in Bame village, Leparada district, earmarked for a Corps Ammunition Point. The Defence Ministry had initially approved ₹70 crore for 537 acres at ₹12.9 lakh per acre.
However, the reference court revised the compensation to ₹418 crore, prompting the Gauhati High Court’s Itanagar bench to direct the government to deposit 50% of the enhanced amount—₹210 crore—as a precondition for stay.
Government Moves Supreme Court
Additional Solicitor General SD Sanjay argued that the reference court’s order was based on “forgery, fabrication, and fraud”, as the landowners had already accepted the original compensation in November 2023 and signed deeds of acceptance. The Centre contends that Riba acted alone and misused the legal process to claim the inflated amount.
The Supreme Court has agreed to urgently hear the Centre’s appeal against the High Court’s interim order.
Legal and Security Implications
The case raises serious concerns about land acquisition transparency, document verification, and the potential misuse of legal mechanisms in sensitive border areas. If proven, the fraud could become one of the largest compensation scams involving defense land in India.
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