The Supreme Court on Monday (April 6) ordered a preliminary investigation by the Central Bureau of Investigation (CBI) into allegations that public contracts in Arunachal Pradesh were awarded to firms linked to relatives of Chief Minister Pema Khandu.
The direction came while hearing a petition accusing the state government of favouritism in awarding contracts over the past decade.
A bench comprising Justices Vikram Nath, Sandeep Mehta and N.V. Anjaria directed the CBI to submit its report within 16 weeks, reported Live Law.
The agency has been asked to examine contracts awarded between January 1, 2015, and December 31, 2025, though the court clarified that the CBI would not be restricted from probing contracts outside this period if required. The court also directed the state chief secretary to appoint a nodal officer within a week to coordinate with the investigation.
The order followed petitions filed by Save Mon Region Federation and Voluntary Arunachal Senaa, which alleged that contracts worth Rs 1,270 crore were granted to companies connected to the chief minister’s family. The court permitted the CBI to scrutinise all contracts awarded to firms allegedly linked to Khandu, his wife, his father’s second wife Rinchin Drema and his nephew Tsering Tashi.
During the hearing, the bench noted concerns over the pattern of allotments, observing, “The coincidence is remarkable that in a state, work orders and tenders are given to family members in huge numbers.”
Earlier, in July last year, the Arunachal Pradesh government had informed the Supreme Court that nearly 95% of the contracts involving persons related to Khandu were awarded through an “open tender” process after evaluation of technical and financial bids, denying any “pick and choose” policy or “undue favour” to beneficiaries.
The CBI probe is expected to determine whether the allocation of government contracts followed due process or involved irregularities, with the Supreme Court monitoring further developments once the agency submits its report.
The direction came while hearing a petition accusing the state government of favouritism in awarding contracts over the past decade.
A bench comprising Justices Vikram Nath, Sandeep Mehta and N.V. Anjaria directed the CBI to submit its report within 16 weeks, reported Live Law.
The agency has been asked to examine contracts awarded between January 1, 2015, and December 31, 2025, though the court clarified that the CBI would not be restricted from probing contracts outside this period if required. The court also directed the state chief secretary to appoint a nodal officer within a week to coordinate with the investigation.
The order followed petitions filed by Save Mon Region Federation and Voluntary Arunachal Senaa, which alleged that contracts worth Rs 1,270 crore were granted to companies connected to the chief minister’s family. The court permitted the CBI to scrutinise all contracts awarded to firms allegedly linked to Khandu, his wife, his father’s second wife Rinchin Drema and his nephew Tsering Tashi.
During the hearing, the bench noted concerns over the pattern of allotments, observing, “The coincidence is remarkable that in a state, work orders and tenders are given to family members in huge numbers.”
Earlier, in July last year, the Arunachal Pradesh government had informed the Supreme Court that nearly 95% of the contracts involving persons related to Khandu were awarded through an “open tender” process after evaluation of technical and financial bids, denying any “pick and choose” policy or “undue favour” to beneficiaries.
The CBI probe is expected to determine whether the allocation of government contracts followed due process or involved irregularities, with the Supreme Court monitoring further developments once the agency submits its report.

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