The Bench stated.”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 and who are the parties to whom the contract is awarded and what is the process. If tenders were not called for, it must be stated. Both the ministries must come out clear. We also need to see who are the ones behind it”
NEW DELHI: Today, 18th March, The Supreme Court of India has taken serious note of allegations that government contracts for public works in Arunachal Pradesh were awarded to firms linked to the family members of Chief Minister Pema Khandu.
A Bench comprising Chief Justice of India (CJI) Sanjiv Khanna, Justice PV Sanjay Kumar, and Justice KV Viswanathan has directed the Union Ministry of Finance and the Union Ministry of Home Affairs to submit detailed reports on the matter.
“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 and who are the parties to whom the contract is awarded and what is the process. If tenders were not called for, it must be stated. Both the ministries must come out clear. We also need to see who are the ones behind it,” the Bench stated.
The Court has also demanded a similar report from the Arunachal Pradesh government and the Comptroller and Auditor General of India (CAG).
“We need a detailed affidavit from the State of Arunachal furnishing details of parties to whom contract was awarded and with reference to contract mentioned in the plea. In addition, the reply shall entail contracts awarded to respondents 4 to 6. Ministry of Finance and Home Affairs to file a detailed affidavit and CAG is also directed to submit contract-wise details and the persons to whom it was awarded,” the Court ordered.
The Supreme Court was hearing a Public Interest Litigation (PIL) petition filed by Save Mon Region Federation, represented by advocate Prashant Bhushan. The petition demands a probe by the Central Bureau of Investigation (CBI) or a Special Investigation Team (SIT) into the allegations.
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Bhushan described the situation as alarming.
“The state of affairs are shocking. The State is being run like a private limited company. All contracts to his wife’s company, his cousin’s company, etc.”
When the Court asked how many contracts were involved, Bhushan responded,
“Hundreds … for hundreds of crores. 70 contracts to his wife’s companies worth hundreds of crores. The counter says land is given free of cost for employment generation.”
On the other hand, the respondents argued that Arunachal Pradesh operates differently and that the petition was politically motivated.
“CAG in report says Arunachal is slightly different and is doing everything it can do.. and it is as per law. This is a politically motivated.. petitioners are a small bunch of people who don’t want development in the State.”
The PIL claims that government contracts were granted to firms owned by Pema Khandu’s family members and close associates without a proper tender process, indicating favoritism.
As per the petition, a construction company named M/s Brand Eagles, owned by Khandu’s wife, has received a large number of government contracts despite a clear conflict of interest.
The petitioner also alleges that when Pema Khandu’s father, late Dorjee Khandu, was the Chief Minister of Arunachal Pradesh, contracts were awarded to the same firm, then under Pema Khandu’s ownership, without any tendering process.
Among those named in the plea are Dorjee Khandu’s second wife, Rinchin Drema, and his nephew, Tsering Tashi, who is the MLA for Tawang District. Tashi owns M/s Alliance Trading Co., another company accused of receiving multiple government contracts.
The petitioner argues that these contracts violate the Prevention of Corruption Act and the code of conduct for ministers.
During the hearing, Attorney General R. Venkatramani was informed that the Union Ministries must file their response in the matter. The Supreme Court insisted that all reports be submitted before the next hearing.
The case will be heard next on July 21.
