Today, On 8th September, Supreme Court orders Centre to respond to a plea against Arunachal Pradesh CM Pema Khandu within three weeks, saying, “We must have a clear-cut answer regarding who received the contracts and the process involved,” emphasizing government accountability.

New Delhi: The Supreme Court granted the Central government three weeks to respond to allegations that various public works contracts in Arunachal Pradesh were awarded to companies associated with Chief Minister Pema Khandu’s family members.
A Bench comprising Justice Vikram Nath and Justice Sandeep Mehta dismissed the argument that the Union Ministry of Finance is not involved in the case.
The Court stated,
“Don’t tell us all these technicalities. There is a specific direction that the Ministry of Home Affairs and Ministry of Finance shall also file an affidavit. That is more than enough to file an affidavit,”
In March, the Supreme Court had requested reports from the Union Ministry of Finance and the Union Ministry of Home Affairs to clarify the allegations.
The Bench had remarked,
“We want the Ministry of Finance and Ministry of Home Affairs report. The CAG report is neither here nor there. We must have a clear-cut answer regarding who received the contracts and the process involved. If tenders were not called for, it must be stated. Both ministries must clarify. We also need to identify the individuals behind it,”
The Court was reviewing a Public Interest Litigation (PIL) that sought an investigation by the Central Bureau of Investigation (CBI) or a Special Investigation Team (SIT) into these claims.
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Today, advocate Prashant Bhushan, representing the petitioner Save Mon Region Federation, argued that the Chief Minister was operating the State of Arunachal Pradesh as if it were a private enterprise.
He stated,
“The Union of India, i.e., the Ministry of Home Affairs and Ministry of Finance, were directed to file the detailed affidavit. The UOI hasn’t filed any affidavit. In fact, their affidavit should not only be in response to the petition, but it should also be in response to the affidavit filed by the state as well as a report of CAG,”
The Court then granted the Central government a final chance to respond to the PIL.
The Court ordered,
“An affidavit in response to the order dated 18th March 2025 has already been filed by the state of Arunachal Pradesh. However, the Union of India hasn’t filed the affidavit yet. Therefore, UOI is granted three weeks and no more time to file the affidavit,”
The petition claims that the awarding of government contracts to companies owned by the Chief Minister’s family and close associates indicates favoritism, allegedly with the CM’s direct knowledge, consent, and active support.
According to the petitioner, the construction firm M/s Brand Eagles, which is owned by Khandu’s wife, has received numerous government contracts despite apparent conflicts of interest.
The petition notes that when Pema Khandu’s father, the late Dorjee Khandu, was Chief Minister, the firm was registered under Pema’s name and awarded contracts without a tender process.
Dorjee Khandu’s second wife, Rinchin Drema, and his nephew, Tsering Tashi, have also been named as respondents. Tashi, the MLA for Tawang District, operates M/s Alliance Trading Co., which has allegedly received many contracts in violation of the Prevention of Corruption Act and the code of conduct for ministers.
