Supreme Court of India orders Central Bureau of Investigation probe into ₹1,270-crore govt contracts linked to Pema Khandu’s family

The Supreme Court has directed the Central Bureau of Investigation (CBI) to conduct a preliminary inquiry into allegations that government contracts in Arunachal Pradesh were awarded to firms linked to Chief Minister Pema Khandu’s family members.

Acting on a public interest litigation filed by the Save Mon Region Federation, the court asked the CBI to register a preliminary inquiry and examine the award and execution of public works contracts between November 2015 and 2025.

The probe will specifically scrutinise contracts allegedly granted to entities associated with the respondents named in the petition, including firms linked to the Chief Minister’s relatives, including his wife, mother and nephew.

A bench comprising Justice Vikram Nath, Justice Sandeep Mehta, and Justice NV Anjaria said that the CBI would look into the award of tenders, execution of projects, and the flow of payments. It clarified that the agency is not restricted to the specified time frame and may examine transactions outside this period if required.

The CBI has been given 16 weeks to submit a status report indicating whether a full-fledged independent investigation is warranted.

The Supreme Court clarified that its observations at this stage are limited to assessing the need for a deeper probe and do not amount to any finding on the merits of the allegations.

The petitioners have alleged that contracts worth around Rs 1,270 crore were illegally awarded to firms linked to the Chief Minister’s family members. Senior advocate Prashant Bhushan, appearing for the petitioners, argued that tenders were granted out of turn and at inflated rates.

According to the plea, a construction firm owned by Khandu’s spouse, M/s Brand Eagles, was among those that benefited from the alleged irregularities. It also named his nephew, Tsering Tashi, an MLA from Tawang district, who owns M/s Alliance Trading Co., claiming that his firm received contracts without due process.

The petition, filed in 2024, sought an investigation by the CBI or a Special Investigation Team (SIT) into what it described as preferential allotment of key public works contracts to the Chief Minister’s relatives.