The Supreme Court has ordered a CBI probe into allegations of favouritism in allotment of public works contracts to firms linked to Arunachal Pradesh Chief Minister Pema Khandu’s family. The Court directed the CBI to begin a preliminary enquiry within two weeks and submit a status report within 16 weeks.
The Supreme Court on Monday ordered a probe by the Central Bureau of Investigation (CBI) into serious allegations of favouritism in the allotment of public works contracts in Arunachal Pradesh. These allegations are related to contracts being awarded to firms linked to family members of Arunachal Pradesh Chief Minister Pema Khandu.
A Bench of Justices Vikram Nath, Sandeep Mehta and NV Anjaria passed the order and directed the CBI to begin its probe within two weeks. The Court clearly stated that the investigation should cover the execution of public works contracts and work orders issued between January 1, 2015 and December 31, 2025.
“CBI shall initiate a preliminary enquiry within 2 weeks. Preliminary enquiry and consequential investigation if any shall cover execution of public works contracts and work orders within the period January 1, 2015 to December 31, 2025,”
the Court ordered.
The Supreme Court also clarified that the CBI investigation will not be limited only to this time period and the agency can examine transactions even beyond this period if required for the investigation.
The Court further directed the Arunachal Pradesh government to fully cooperate with the CBI during the investigation process and ensure that all records are preserved and no documents are destroyed.
“State of Arunachal Pradesh shall cooperate fully with the CBI. Chief Secretary of the State shall designate a nodal officer for coordination with the CBI. State shall ensure no record is destroyed,”
the order said.
The Court also directed the CBI to submit a status report before the Supreme Court within 16 weeks regarding the progress of the investigation.
The matter relates to a Public Interest Litigation (PIL) filed by an NGO named Save Mon Region Federation, which sought an investigation either by the CBI or a Special Investigation Team (SIT) into the allegations of irregularities and favouritism in government contract allotments in the State.
Earlier, in March 2025, the Supreme Court had asked the Union Ministry of Finance and the Union Ministry of Home Affairs to submit a report and clarify their stand on the allegations made in the PIL.
According to the petition filed before the Court, the petitioner alleged that the State of Arunachal Pradesh was being run like a private company by the Chief Minister and that government contracts were being awarded to companies linked to his family members and close associates.
The petition stated that development projects worth approximately ₹1,245 crore were allotted through tenders, and additional work orders worth around ₹25 crore were also issued. The petitioner argued that many of these contracts were awarded to firms linked to the Chief Minister’s family members, which showed clear favouritism in the award of government contracts with the direct knowledge, consent and active support of the Chief Minister.
The plea also mentioned a construction company named M/s Brand Eagles, which is owned by the Chief Minister’s wife. According to the petitioner, the company was awarded a large number of government contracts despite there being a clear conflict of interest.
The petition further claimed that when Pema Khandu’s father, late Dorjee Khandu, was the Chief Minister of Arunachal Pradesh, the same firm was in Pema Khandu’s name and had received contracts without proper tender processes.
The petition also made Dorjee Khandu’s second wife Rinchin Drema and his nephew Tsering Tashi respondents in the case. Tsering Tashi is an MLA from Tawang district and is the owner of M/s Alliance Trading Co. The petition alleged that many government contracts were awarded to M/s Alliance Trading Co. in violation of the Prevention of Corruption Act and the code of conduct applicable to ministers.
Senior Advocate Prashant Bhushan appeared for the petitioner before the Supreme Court and argued the matter in support of the demand for an independent investigation into the alleged irregularities in public contract allotments in Arunachal Pradesh.
The Supreme Court’s order is significant because it directs an independent central agency to investigate allegations involving public money, government contracts and possible conflict of interest at the highest level of the State government.
The outcome of the CBI probe will be important in determining whether there was any illegality, favouritism or violation of anti-corruption laws in the award of public works contracts in Arunachal Pradesh.
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