Hundreds of people affected by the Gosikhurd Dam project Friday entered the MLA hostel here and occupied it.
The protest, which started around 4pm, is being led by Independent MLA from Achalpur Bacchu Kadu.
These PAPs, hailing from 40-50 villages in the vicinity of the Gosikhurd Dam, shouted slogans demanding compensation.
A large posse of police personnel has been deployed to bring the situation under control.
The MLA hostel complex in the city's Civil Lines area here has three wings.
Kadu told reporters that an increase in the water level of the dam had affected villages in the vicinity, blocking roads, and farmers were unable to harvest crops.
The MLA said that several PAPs had been rehabilitated 25 kilometres away from their original villages.
"We demand that PAPs should get full rehabilitation settlement and proper facilities. The PAPs have also not got jobs despite assurances. If not jobs, they should be given money," he said.
The Gosikhurd dam is situated in Bhandara district.
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