The Supreme Court on Monday ordered a “preliminary” CBI inquiry into allegations surrounding the award of public contracts in Arunachal Pradesh to firms owned by the family and friends of chief minister Pema Khandu.
These contracts were purportedly awarded between January 1, 2015, and December 31, 2025. Khandu has been chief minister since July 2016. He was first in the Congress and then in the People’s Party of Arunachal before joining the BJP.
Khandu welcomed the court order, asserting his government had “nothing to hide”, PTI reported.
“The investigation shall include examination of the procurement process, the reasons and approvals for dispensing with tender, the availability and custody of records including vouchers, comparative statements and file noting, the identity of beneficial owners of the contractor entities, the fund flow and payments made, and any other connected matter necessary to ascertain whether any illegality or cognisable offence is disclosed,” the bench of Justice Vikram Nath, Justice Sandeep Mehta and Justice N.V. Anjaria said.
“The CBI shall, in particular, examine awards made to Respondent Nos. 4 to 6 (the chief minister and his family members) and to firms or individuals related to them….”
The bench said the CBI must start the probe within two weeks and submit a status report within 16 weeks.
It added that the agency can examine transactions outside the specified period to the limited extent necessary to trace beneficial ownership, related-party links, fund flows and connected circumstances “that bear upon the transactions within the above period”.
Two NGOs, the Save Mon Region Federation and the Voluntary Arunachal Sena, had moved separate petitions alleging illegality and arbitrariness in public procurement and the award of public contracts in Arunachal, particularly those awarded to firms and individuals close to Khandu.
They alleged that contracts involving thousands of crores of rupees had been awarded through work orders, and without an open and competitive tender process.
“The State does not hold public resources as a private proprietor, but as a trustee on behalf of the people. Whenever the State undertakes the allocation of public resources, the award of public contracts, or the execution of public works, it is bound to act in a manner that is transparent, fair, and consistent with the guarantee of equality under Article 14 of the Constitution of India,” the bench said.
“The process through which such decisions are taken must therefore be capable of withstanding objective scrutiny and must reflect a decision-making framework that is free from arbitrariness, favouritism, or undisclosed conflicts of interest.”
In a statement, Khandu said the inquiry would help clear the air and reaffirm transparency in his governance, PTI reported. He said his government would extend all required support for a fair and independent inquiry.
“The truth will come out,” Khandu said.
The Arunachal Congress demanded Khandu’s resignation.
State Congress president Bosiram Siram said the court directive had vindicated the party’s longstanding allegations of corruption, nepotism and the misuse of authority under the state’s BJP-led government.
Siram said government contracts reportedly worth more than ₹1,270 crore had been awarded over the past decade to firms connected to Khandu’s family.