The Supreme Court on Monday directed the Centre to file within three weeks its stand on a PIL alleging Arunachal Pradesh Chief Minister Pema Khandu awarded contracts to his family members.

A bench of Justices Vikram Nath and Sandeep Mehta was informed that the state had already filed its affidavit in terms of the apex court's March 18 order.

A PIL filed by NGOs Save Mon Region Federation and Voluntary Arunachal Senaa alleged all government contracts in the state were being awarded to the CM's close family members.

Advocate Prashant Bhushan, appearing for the petitioners, referred to the March 18 order and said the Centre had not filed its affidavit yet.

"State of Arunachal Pradesh is being run by the chief minister like his private limited company," Bhushan alleged.

When he argued the state's affidavit talked about hundreds of contracts being awarded, Arunachal Pradesh's counsel opposed it.

"It is wrong," the state's counsel said, "he (petitioner) is taking out skeletons out of the cupboard when none exists".

Claiming the plea was a "sponsored litigation", the state's counsel referred to contracts awarded in 2010 and 2011.

Bhushan referred to March 18 order which reads, "The Union of India, that is, the Ministry of Home Affairs and the Ministry of Finance, shall also file detailed affidavits".

"They have not filed (affidavit). There affidavit now 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 the report of the CAG (Comptroller and Auditor General of India)," he said.

The Centre's counsel said they were supposed to file an affidavit but the Ministry of Finance was not a party in the matter and the ministry will have to be impleaded.

"This court had given you a direction. File the affidavit," the bench observed.

"Don't tell us all these technicalities. There is a specific direction by this court that the Union of India, i.e., the Ministry of Home Affairs and the Ministry of Finance shall also file detailed affidavit. That is more than enough for you to have filed an affidavit. There is no need to be impleaded," the bench said.

While noting the state had filed the affidavit, the bench said, "However, the Union of India prays for and is granted three weeks and no more time to file an affidavit." The bench also observed that CAG had filed its report.

The matter was then posted after three weeks.

The bench also allowed the petitioner to file a response to the affidavit filed by Arunachal Pradesh.

On March 18, the apex court asked the state to file a detailed affidavit furnishing the details of parties to whom contracts were awarded with reference to the contracts mentioned in the petition. Pema Khandu is party to the PIL.

Pema Khandu's father Dorjee Khandu's second wife Rinchin Drema and his nephew Tsering Tashi have also been made parties to the case.

Dorjee Khandu served as the chief minister of Arunachal Pradesh from 2007 until his death in a helicopter crash in April 2011.

The apex court had said it also wanted a detailed final status report from the CAG keeping in mind the code of conduct for lawmakers and their role in awarding government contracts.

The plea claimed Rinchin Drema's firm, Brand Eagles, was awarded a large number of government contracts despite there being a clear conflict of interest.

The PIL claimed when there was evidence of government contracts being awarded only to the firms of family members of the chief minister and his close associates, it was reasonable to draw an inference that such favour for government contract works of vast magnitude could not have been possible without direct knowledge, consent and active support of the minister concerned.

The petition said the restoration works for flood damage were allotted by the state government's Department of Relief and Rehabilitation.

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