Think about it this way - you and your family live somewhere and are being displaced to make way for a dam, some guy in a suit comes around and says "we'll pay $1000 per resident to move you somewhere else".
Maybe your uncle lived at your house with his wife for 5 years, until they moved to the city last year. Your grandmother lived there until she died 6 months ago. So lets say it's just you, your partner, and 2 kids.
But, that's a lot of money - do you tell the man in the suit that your house has 4 residents, or maybe stretch the truth to 5 or 6 (your uncle might move back soon, after all)?
And remember, corruption often stacks - individuals might add an extra person here and there, but then the local relocation manager adds a few % to get a little extra on top, and their boss adds another few %, and so on... soon you're seeing 25% more people than actually reside there.