Thousands 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, are shouting 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.