A detailed investigation by NDTV has uncovered a concerning trend in Madhya Pradesh: thousands of crores in compensation claims for fake houses along the MP-UP highway project. The investigation also threw up an alarming development in Singrauli district.
In 2016, a budget of Rs 6,672 crore was allocated for the Lalitpur-Singrauli railway line. However, the project has stalled, leaving the railway incomplete. Meanwhile, a different construction boom has emerged: outsiders are swiftly erecting makeshift houses on tribal lands to exploit hefty compensation payouts from the government. Our investigation delves into the scale of this growing scam.
The Rise of 'Compensation Houses'
Compensation has become a lucrative industry, centered around what locals call 'compensation houses'. Earlier, we reported on the rapid construction of these makeshift homes along the Singrauli-Prayagraj National Highway. Within a month, lush green fields in 33 villages of Chitrangi and Dudhmaniya were replaced with hastily constructed rows of houses, all strategically built to claim compensation.
This trend seems to have extended from the railway project itself. Local leaders, officials, and land mafia are alleged to have colluded in buying land from farmers in Singrauli district, setting up superficial structures to exploit compensation schemes.
For six years now, makeshift houses have sprung up across 22 villages in Singrauli and 91 villages in Sidhi. Many of these villages struggle to provide two meals a day to their residents. The sudden appearance of concrete houses raises serious questions about their true purpose. Most of these areas are inhabited by Baiga tribals, who are increasingly aware of the scheme but feel powerless to stop it.
"People from outside have come and built houses on our land, giving us some money and exploiting us. They've made agreements, demanding 25% of the compensation," says Jagjivan Baiga, a local resident.
The railway track is set to cut through 22 villages in the Devsar and Chitrangi blocks of Singrauli district. The land acquisition office has approved compensation for approximately 2166 houses in these villages. Despite initial oversights, recent surveys have identified over 1500 new compensation houses.
"These houses belong to outsiders from Uttar Pradesh, Bihar, West Bengal, and Jharkhand. Wealthy individuals are buying land and constructing multi-storey houses solely to claim compensation. Poor locals are being manipulated, with outsiders registering land in their names or making agreements promising a small commission," explains Anirudh Shukla, another local resident.
A History of Compensation Scams
Singrauli district, known for its power companies, has long been a hotspot for compensation scams. A notorious syndicate preys on landowners, purchasing land cheaply or coercing them into agreements. They then construct buildings to inflate compensation claims.
"People have built houses solely for compensation, with deals often involving a 25% cut," says Rampal Singh, a local resident.
"Outsiders and even some locals have built houses on our land, tempting us with money. We haven't received any payments yet, and there's no guarantee we ever will," adds Kumare Baiga, another resident.
An investigation by NDTV uncovered agents openly discussing building houses in exchange for a share of the compensation, typically ranging from 25% to 30%.
"We're currently charging around 30%, up from 25% due to rising costs," says Inchlal Sahu, an agent.
Similar to the highway project, many of these compensation houses remain unoccupied. Despite assurances from authorities that new constructions will not receive compensation, the trend persists unchecked.
"Numerous houses have been constructed here by outsiders," says Chandrashekhar, a resident of Kursa village.
"Compensation is intended only for houses with existing amenities like electricity and water. New constructions post-notification are ineligible," confirms Michael Tirkey, Deputy Collector.
"Corruption is rampant in the Lalitpur-Singrauli railway line project. Fake houses are claimed on tribal land, and compensation is sought without proper registration post-notification. Despite investigations revealing the absence of these houses, payments continue, benefiting both the compensation mafia and complicit officials," explains Yogeshwar Prasad Tiwari, an advocate.
In the railway project, while only 41 houses have been built across 32 villages in Panna district, compensation claims have been made for 4700 houses in Singrauli's 22 villages. Despite prohibitions, construction of over 1500 houses across 10 villages continues, highlighting administrative inertia.
This investigation exposes the dark underbelly of the compensation industry, revealing a nexus of corruption that plagues developmental projects. As the government turns a blind eye to these injustices, the fight for transparency and accountability rages on.
