The Supreme Court on April 6 directed the Central Bureau of Investigation to hold a preliminary inquiry into the alleged irregular allotment of public contracts by the Arunachal Pradesh Government to companies owned by relatives of Chief Minister Pema Khandu.
The Court asked the CBI to submit a report within 16 weeks. That report must indicate whether the matter warrants an independent investigation.
It further directed the agency to examine contracts awarded from January 1, 2015, to December 31, 2025. At the same time, the Bench clarified that the CBI may also look into work contracts outside that period.
A Bench of Justice Vikram Nath, Justice Sandeep Mehta and Justice N V Anjaria passed the order. The matter arose from a petition filed by Save Mon Region Federation and Voluntary Arunachal Senaa. Senior Advocate Prashant Bhushan appeared for the petitioners.
The Bench also ordered the State and its concerned departments to cooperate with the CBI. It asked them to produce all relevant records within four weeks. The judges also directed the authorities to ensure that no record is destroyed.
In addition, the Court told the Chief Secretary to appoint a nodal officer within one week. That officer will coordinate with the CBI.
According to the petitioners, the State awarded contracts and tenders to firms linked to the Chief Minister, his spouse, his mother and his nephew. Appearing for the petitioners, Bhushan alleged that authorities illegally allotted contracts worth Rs 1270 crores to the Chief Minister’s relatives.
The organisations approached the Court in 2024. They alleged favouritism in the award of major tenders to persons close to Khandu. Among the examples cited was the construction company M/s Brand Eagles, which they said belonged to his spouse.
They further claimed that Tsering Tashi, Khandu’s nephew and an MLA from Tawang District, owns M/s Alliance Trading Co. The petitioners alleged that authorities awarded work contracts to that firm without following due procedure.
Through the petition, the organisations sought an investigation by the Central Bureau of Investigation or a Special Investigation Team. The Supreme Court issued notice to the respondents in January 2024.
Later, in March 2025, the Court sought detailed responses from the Ministry of Home Affairs, the Ministry of Finance and the State government. It asked them to explain which authorities awarded the public work tenders and how they awarded them.
The order also referred to another case from 2024. In that matter, the Court called for a report from the Comptroller and Auditor General. That case concerned allegations against Khandu’s father, Dorjee Khandu. He too faced allegations of awarding important public works contracts to family companies.
While hearing the present case in March last year, then Chief Justice of India Sanjiv Khanna referred to the CAG report. He noted that the report cited the Code of Conduct laid down by the Ministry of Home Affairs for Union and State Ministers. He said ministers must follow that Code on entering office. Under the Code, no minister can give undue advantage to his or her relatives.
Case Title: Save Mon Region Federation And Anr v. The State Of Arunachal Pradesh And Ors., W.P.(C) No. 54/2024
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