The Supreme Court on Monday, April 6 directed the Central Bureau of Investigation to begin a preliminary inquiry into alleged irregularities in the allotment of public works contracts by the Arunachal Pradesh government to firms linked to relatives of Chief Minister Pema Khandu.
The court asked the CBI to submit a report within 16 weeks on whether a full investigation is required. The probe will cover contracts awarded between November 2015 and 2025.
The court said the CBI must begin its preliminary inquiry within two weeks. The examination will include public works, contracts and work orders from January 1, 2015 to December 31, 2025.
It directed the agency to specifically look into awards made to respondents 4 to 6, while also allowing it to examine transactions beyond this period if necessary.
The state government has been told to fully cooperate with the CBI. The Chief Secretary must appoint a nodal officer to coordinate with the agency, and the state must ensure that no records are destroyed.
The CBI has been asked to file a status report before the court within 16 weeks.
The order was passed by a bench of Justices Vikram Nath, Sandeep Mehta and N V Anjaria while disposing of a petition filed by Save Mon Region Federation and Voluntary Arunachal Senaa.
The petitioners alleged that several state contracts and tenders were awarded to firms linked to the Chief Minister, including his spouse, mother and nephew.
Senior advocate Prashant Bhushan, appearing for the petitioners, claimed that contracts worth around Rs 1,270 crore were illegally given to the Chief Minister’s relatives.
The plea, filed in 2024, alleged bias in awarding key tenders to close associates of Khandu. It named the construction firm M/s Brand Eagles, said to belong to his spouse, as one of the beneficiaries.
It also claimed that his nephew, Tsering Tashi, an MLA from Tawang district who owns M/s Alliance Trading Co., received work contracts without proper procedure.
The petition sought an investigation either by the CBI or a Special Investigation Team.
The court issued notice to the respondents in January 2024. In March 2025, it asked the Ministry of Home Affairs, the Ministry of Finance and the state government to provide detailed responses on how public work tenders were awarded.
In 2024, a report was also sought from the Comptroller and Auditor General in a separate case involving Khandu’s father, Dorjee Khandu, who had faced similar allegations.
While hearing the present case in March last year, then Chief Justice Sanjiv Khanna noted that the CAG report referred to the code of conduct issued by the Ministry of Home Affairs for ministers at both Union and state levels. The code states that no minister should give undue advantage to relatives.
