New Delhi: The Supreme Court, on Monday, directed the Central Bureau of Investigation (CBI) to conduct a preliminary inquiry into the alleged irregular allotment of public contracts by the Arunachal Pradesh government to companies owned by relatives the state’s chief minister Pema Khandu.
The CBI will submit a report within 16 weeks as to whether an independent investigation is warranted, the Court directed. The agency will examine contracts awarded from January 1, 2015, to December 31, 2025. However, it shall not be precluded from examining the work contracts beyond the above period, the Court ordered.
The order was passed by the bench of Justice Vikram Nath, Justice Sandeep Mehta and Justice N V Anjaria, based on a petition by Save Mon Region Federation and Voluntary Arunachal Senaa, as reported by LiveLaw.in.
The State and its concerned department was directed by the Court to cooperate with the CBI. All relevant records are to made available to the agency within four weeks. The state shall also ensure that no record is destroyed.
The chief secretary of the state shall also designate a nodal officer within a week for coordination with the CBI, the Court ordered.
The petitioners, through their counsel senior advocate Prashant Bhushan, have alleged that contracts and tenders of the state were awarded to firms associated with the chief minister, his spouse, mother, and nephew.
Contracts worth Rs 1270 crores were illegally allotted to the CM’s kin, Bhushan alleged.
The petitioners approached the Court in 2024, alleging partiality in the giving away of key tenders to close associates of Khandu, including the construction company ‘M/s Brand Eagles’ (belonging to his spouse).
Khandu’s nephew, Tsering Tashi, an MLA from Tawang District, who owns M/s Alliance Trading Co, was awarded work contracts without following due procedure, it was alleged. The petition prayed for an investigation into the matter either by the CBI or an SIT.
Notice was issued to the respondents in January, 2024. In March 2025, the Court sought detailed responses from the Ministry of Home Affairs, the Ministry of Finance and the state government with respect to the parties that awarded public work tenders and the manner in which the same were awarded.
