The Supreme Court on Monday ordered a Central Bureau of Investigation probe into allegations of undue preference in the award of public works contracts in Arunachal Pradesh to firms linked to relatives of Chief Minister Pema Khandu. A Bench of Justices Vikram Nath, Sandeep Mehta, and N V Anjaria directed the agency to begin with a preliminary enquiry within two weeks.
“CBI shall initiate a preliminary enquiry within two weeks. Preliminary enquiry and consequential investigation, if any, shall cover execution of public works contracts and work orders within the period January 1, 2015, to December 31, 2025,” the Court ordered.
It added that the agency would not be confined to this period and could examine transactions beyond it if required. The state government has been instructed to extend full cooperation to the probe.
“State of Arunachal Pradesh shall cooperate fully with the CBI. Chief Secretary of the state shall designate a nodal officer for coordination with the CBI. State shall ensure no record is destroyed,” the order said. The Bench further directed that the CBI submit a status report within 16 weeks.
The directions came in a public interest litigation filed by the Save Mon Region Federation, which sought an independent probe, either by the CBI or a Special Investigation Team, into the alleged irregularities. In March 2025, the court had asked the Union Ministries of Finance and Home Affairs to place their responses on record regarding the allegations.
The petition claims that development works worth around ₹1,245 crore were awarded through tenders, along with additional work orders of about ₹25 crore. It alleges that contracts were granted to firms owned by family members and associates of the chief minister, pointing to a pattern of favouritism carried out with his knowledge and support.
Among the allegations is that M/s Brand Eagles, said to be owned by Khandu’s spouse, received multiple government contracts despite an apparent conflict of interest. The plea also refers to an earlier period when the firm was allegedly in Khandu’s name during the tenure of his father, late Dorjee Khandu, and was awarded projects without a tender process.
The petition further names relatives, including Tsering Tashi, an MLA from Tawang district, who is associated with M/s Alliance Trading Co., alleging that several contracts were awarded to such entities in violation of the Prevention of Corruption Act and the code of conduct applicable to ministers.
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