Itanagar/New Delhi: The Supreme Court has directed the Central Bureau of Investigation (CBI) to conduct a preliminary enquiry into serious allegations of nepotism and corruption involving Arunachal Pradesh Chief Minister Pema Khandu and his family members in the award of public works contracts worth over ₹1,270 crore between January 2015 and December 2025.
In a detailed order passed on April 6, 2026, a three-judge bench comprising Justices Vikram Nath, Sandeep Mehta, and N V Anjaria asked the CBI to register the preliminary enquiry within two weeks and submit a status report within 16 weeks. The court instructed the Arunachal Pradesh government to fully cooperate, preserve all records, and appoint a nodal officer for coordination.
Core Allegations
The petition, filed by the Save Mon Region Federation and Voluntary Arunachal Sena (represented by senior advocate Prashant Bhushan), alleged that multiple firms linked to CM Khandu’s close relatives systematically received government contracts across seven departments — Public Works, Rural Works, Water Resources, Hydro-Power, Power, Urban Development, and Public Health Engineering.
At least 15 companies were allegedly connected to the family, including:
- Firms owned by or linked to Pema Khandu’s wife, mother, brother Tsering Tashi (Tawang MLA), step-mother, cousins, and uncles.
Out of 443 contracts under scrutiny, 121 were awarded through competitive bidding (with alleged collusive practices) and 322 through direct work orders, often bypassing standard tender procedures using provisions of the Arunachal Pradesh District Based Entrepreneurs and Professionals Act.
The petition highlighted patterns of collusive bidding (narrow price differences between family-linked firms) and repeated violations of work-order limits and procedural safeguards.
A Comptroller and Auditor General (CAG) report submitted in July 2025 pointed out missing records, absence of tender documents, and other irregularities, strengthening the case for a criminal probe.
Supreme Court’s Observations
The court rejected the state’s argument that the contracts formed only a small percentage of total works, observing that even a single instance of conflict of interest or deliberate bypass of competition violates Article 14 (equality before law) of the Constitution.
“The Constitution does not tolerate a breach of public trust merely because the breach is numerically small… A low percentage cannot become a license. It cannot be a defence to nepotism.”
The bench noted that audit reports alone cannot establish criminal offences, necessitating a CBI enquiry to examine ownership links, decision-making processes, and possible offences.
Background and Timeline
The case has roots in a 2007 PIL filed against similar practices during the tenure of Pema Khandu’s father, late Chief Minister Dorjee Khandu. After Dorjee Khandu’s death in a 2011 helicopter crash, allegations continued under Pema Khandu’s leadership. The Supreme Court had earlier directed the CAG to examine the matter before ordering the current CBI probe.
CM Pema Khandu has welcomed the order, stating he has “nothing to hide” and will extend full cooperation to the CBI to clear the air.
The development has intensified political debate in Arunachal Pradesh, with the opposition Congress demanding the Chief Minister’s resignation on moral grounds.
Tags: Pema Khandu CBI Probe, Supreme Court Arunachal Contracts, Nepotism Allegations Arunachal, ₹1270 Crore Contracts, Tsering Tashi, CAG Report Arunachal, Save Mon Region Federation, Prashant Bhushan, Arunachal Pradesh Politics, Northeast Corruption Case
Hashtags: #PemaKhandu #CBIProbe #SupremeCourt #ArunachalPradesh #ContractScam #NepotismAllegations #TseringTashi #ArunachalNews #NortheastPolitics #IndianPolitics
