Supreme Court Orders CBI Investigation into Arunachal Contracts Linked to CM Pema Khandu's Family
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Key Takeaways
New Delhi, April 6 (NationPress) The Supreme Court has ordered the Central Bureau of Investigation (CBI) to initiate a preliminary investigation into claims of misconduct in the allocation of public works contracts in Arunachal Pradesh, which are reportedly associated with relatives of Chief Minister Pema Khandu.
A panel of Justices Vikram Nath, Sandeep Mehta, and N.V. Anjaria instructed the CBI to commence this inquiry within a fortnight and to act in accordance with applicable laws.
The Supreme Court has further specified that the investigation will focus on the awarding and execution of public contracts, as well as work orders issued from January 1, 2015, to December 31, 2025. It also clarified that the CBI is permitted to investigate transactions outside this timeframe to uncover related party connections, beneficial ownership, flow of funds, or any other pertinent details.
In response to a public interest litigation (PIL) submitted by NGOs Save Mon Region Federation and Voluntary Arunachal Sena, the Bench noted: “The Central Bureau of Investigation (CBI) is to register a preliminary inquiry within two weeks following this ruling and shall proceed according to the law.”
The top court also instructed the CBI to analyze procurement methods, approval of tenders, reasons for skipping open tender processes, and adherence to statutory obligations, in addition to reviewing documentation related to payments, work orders, and their execution.
Significantly, the Supreme Court has instructed the CBI to present a status report within 16 weeks, detailing whether a comprehensive independent investigation is necessary.
The state government is required to fully support the investigation, with the Chief Secretary tasked to appoint a nodal officer within one week to liaise with the CBI.
All pertinent documentation, such as tender papers, administrative approvals, contracts, bills, and electronic procurement records, must be provided within four weeks.
The Bench led by Justice Nath also emphasized the importance of evidence preservation, mandating that no physical or electronic documents related to this case should be “destroyed, altered, or rendered inaccessible.”
In its ruling, the Supreme Court made it clear that its remarks are limited to assessing the necessity of an independent probe and “should not be interpreted as conclusions regarding the validity of any allegations, nor should they affect any individual in subsequent proceedings.”
The directives were issued in response to a PIL alleging that public contracts valued at approximately Rs 1,270 crore were awarded to companies associated with the Chief Minister's relatives, including his spouse and other family members.
During the hearings, attorney Prashant Bhushan, representing the petitioners, claimed that numerous contracts were granted without adhering to proper protocols, including instances where open tender practices were allegedly overlooked.
Last March, the Supreme Court instructed the Arunachal Pradesh government to provide comprehensive affidavits concerning awarded contracts, including those tied to private parties, and also requested a report from the Comptroller and Auditor General (CAG). Following this, in December 2025, Justice Nath’s panel broadened the inquiry's scope to encompass all districts within Arunachal Pradesh, recognizing that the issue was not limited to the Tawang district alone.