SC Orders CBI Probe into Arunachal Pradesh Contracts Linked to CM Khandu

Top Summary

• What happened: The Supreme Court directed the CBI to conduct a preliminary inquiry into alleged irregularities in awarding public contracts by the Arunachal Pradesh government to firms linked to Chief Minister Pema Khandu's relatives.
• Why it matters: The allegations involve contracts worth ₹1270 crores and raise concerns about potential conflicts of interest and misuse of power by public officials.
• What changes for people: The CBI inquiry could lead to a full investigation and potential legal action against those involved if irregularities are confirmed. It promotes transparency and accountability in government contracts.
• Who is affected: Arunachal Pradesh government, Chief Minister Pema Khandu and his relatives, companies involved in the contracts, and the citizens of Arunachal Pradesh.

CBI Inquiry Ordered

The Supreme Court has directed the Central Bureau of Investigation (CBI) to conduct a preliminary inquiry into the alleged irregular allotment of public contracts by the Arunachal Pradesh Government. These contracts were allegedly awarded to companies owned by relatives of Chief Minister Pema Khandu.

The Court ordered the CBI to submit a report within 16 weeks, determining whether an independent investigation is warranted. The CBI is to examine contracts awarded from January 1, 2015, to December 31, 2025.

Scope of the Investigation

The CBI is authorized to examine work contracts even beyond the specified period. A bench comprising Justice Vikram Nath, Justice Sandeep Mehta, and Justice NV Anjaria passed the order following a petition filed by Save Mon Region Federation and Voluntary Arunachal Senaa.

Senior Advocate Prashant Bhushan represented the petitioners. The petitioners allege that contracts and tenders were awarded to firms associated with the Chief Minister, his spouse, mother, and nephew.

Allegations of Irregularities

The petitioners claim contracts worth ₹1270 crores were illegally allotted to Chief Minister Khandu's kin. They specifically cited construction company 'M/s Brand Eagles', allegedly belonging to his spouse.

It was also alleged that Tsering Tashi, Khandu's nephew and an MLA from Tawang District, was awarded work contracts through M/s Alliance Trading Co. without following due procedure.

Court Directives

The Court has directed the State and its concerned departments to cooperate with the CBI and provide all relevant records within four weeks. It also mandated that no records be destroyed.

The Chief Secretary of the State is to designate a nodal officer within one week for coordination with the CBI.

Previous Scrutiny

In 2024, the Court requested a report from the Comptroller and Auditor General (CAG) in a separate case concerning Khandu's father, Dorjee Khandu. He was also accused of awarding public works contracts to family companies.

During a hearing in March of last year, then CJI Sanjiv Khanna referenced the Code of Conduct laid down by the MHA for Union and States' Ministers, which states that no minister can give undue advantage to their relatives.

What to Watch Next

The CBI's preliminary inquiry report in 16 weeks will determine whether a full investigation is launched. Public attention will be focused on the evidence uncovered and the potential legal ramifications for those involved.