SC orders CBI inquiry into Arunachal govt contracts linked to CM Khandu's family

The Supreme Court on Monday (April 6) ordered a preliminary CBI inquiry into alleged irregular allotment of public contracts by the Arunachal Pradesh government to companies which are owned by Chief Minister Pema Khandu’s relatives.

Scope of CBI enquiry

A bench comprising Justice Vikram Nath, Justice Sandeep Mehta, and Justice NV Anjaria directed the CBI to submit a report within 16 weeks on whether an independent investigation into the case is required.

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It asked the Central agency to examine the contracts that were awarded from January 1, 2015, to December 31, 2025, while barring it from probing those that were awarded beyond the stated period.

"The CBI shall register a PE (preliminary enquiry) within two weeks from the date of the judgement and will proceed in accordance with law," Justice Nath said while pronouncing the order

Petition and court directions

The top court issued the order during the hearing of a petition filed by the organisations, Save Mon Region Federation and Voluntary Arunachal Senaa. The petitioner was represented by senior advocate Prashant Bhushan.

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The court also instructed the state government and the concerned department to cooperate with the CBI in the probe, adding that it should make all available relevant records to the Central agency within four weeks.

The Court further directed that the State’s Chief Secretary appoint a nodal officer within a week to liaise with the CBI during the course of the inquiry.

Allegations by petitioners

According to the petitioners, several government contracts and tenders were routed to entities linked to the Chief Minister, including firms connected to his spouse, mother and nephew. Appearing for the petitioners, Bhushan submitted that contracts amounting to Rs 1,270 crore were unlawfully granted to members of the Chief Minister’s family.

However, the counsel appearing for the state had earlier argued that the plea was a "sponsored litigation".

Details of contracts cited

The plea, moved in 2024, alleged a pattern of favouritism in the allocation of key public works. Among the instances cited was the awarding of projects to the construction firm “M/s Brand Eagles”, stated to be owned by the Chief Minister’s spouse.

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It was also contended that his nephew, Tsering Tashi, an MLA from Tawang district who owns M/s Alliance Trading Co., secured contracts without adherence to prescribed procedures, as reported by Live Law.

Earlier proceedings and responses sought

The petition sought a probe either by the CBI or by a Special Investigation Team. The Court had issued notice to the respondents in January 2024. Subsequently, in March 2025, it called for detailed replies from the Ministry of Home Affairs, the Ministry of Finance, and the State government regarding the authorities responsible for awarding public contracts and the process followed in doing so.

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The matter also intersects with an earlier set of allegations. In 2024, the Court had sought a report from the Comptroller and Auditor General in a separate case involving the Chief Minister’s father, Dorjee Khandu, who faced similar accusations of awarding public works to family-linked firms.

During hearings in the present case in March last year, then Chief Justice of India Sanjiv Khanna referred to the CAG’s findings, noting that they invoked the Code of Conduct prescribed by the Ministry of Home Affairs for Union and State ministers. The Code bars ministers from extending undue benefits to their relatives.

(With agency inputs)