Arunachal Chief Minister Pema Khandu, while speaking to media after attending the plenary NEC session on Saturday, rubbished reports of construction of a village by China inside Arunachal Pradesh territory. He reiterated that the village was actually built inside China's territory, which has been in control of the area since 1959.

"Those infrastructure as shown by the TV channel to have been constructed inside Arunachal Pradesh were actually inside a territory which has been under China's occupation since 1959," Khandu said.

"China's persistent claim over the territory of Arunachal Pradesh is illogical and baseless. Arunachal is one of the most patriotic states of India where every Indian citizen is most welcome. It is up to the Ministry of External Affairs to address the issue of China's claim over Arunachal Pradesh territory," he added.

Meanwhile, China dismissed the reports and said that the village was built inside their own territory.

"We have never recognised the so-called Arunachal Pradesh illegally established on Chinese territory," Chinese foreign ministry spokesperson Hua Chunying had said on Thursday.

Furthermore, the Centre asserted that it is keeping a constant watch on all developments "having a bearing on the country's security."