India on Thursday said it has never accepted illegal occupation of its territory and claims by China particularly in Arunachal Pradesh. New Delhi also said China has undertaken construction all along the border and in illegally occupied Indian land. This strong official reaction by the Ministry of external affairs came in response to a recent Pentagon report last week which said China has built a village of more than 100 dwelling units in Arunachal Pradesh last year. Reacting unofficially, the Indian security establishment had on Monday said the village was constructed on a piece of land where an Assam Rifles post was overrun in 1959. Since then, the Chinese army has a post there and it controls that area. The Ministry of External Affairs said here on Thursday, “We have taken note of the US Department of Defence’ report to US Congress which inter-alia also makes a reference to construction activities by Chinese side along the India-China border areas particularly in the Eastern Sector. Reports had also appeared in the media earlier this year on this issue.”