The government has renamed and notified the 12 km stretch of Chakung to Khaniserbong Kamling Road in West Sikkim as Late Arun Rai Marg.
The late Arun Rai was an SDF worker who was killed in a political clash in the run up to the Assembly elections last year.
The Cabinet had cleared the proposal some months ago and the notification to this effect was passed on 13 December.
This stretch of the road was earlier named after veteran politician BB Gooroong.
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The Sikkim Krantikari Morcha (SKM), the principal opposition party in the state, said the ruling party should not have politicised the issue.
SKM spokesman Dilip Rai said there were many more deserving people who have not received recognition.
"We believe that justice should be given to the deserving and this issue should not have come through political affiliation or through political lobbying," Rai said.