India on Thursday said it has neither accepted China’s illegal occupation of its territory nor any unjustified Chinese claims, in the first official reaction to a Pentagon report that said Beijing built a large village in a disputed territory along the Line of Actual Control in the Arunachal Pradesh sector.

External Affairs Ministry Spokesperson Arindam Bagchi said India keeps a constant watch on all developments having a bearing on its security and takes all the necessary measures to safeguard its sovereignty and territorial integrity. He was replying to a question on the US report at a media briefing.