The Supreme Court of India has stepped in to investigate serious allegations involving Arunachal Pradesh Chief Minister Pema Khandu, who is accused of awarding numerous government contracts to firms affiliated with his family and close associates. This inquiry emerges from a public interest litigation (PIL) prompted by concerns over potential favoritism and corruption.
On March 18, 2025, a bench led by Chief Justice Sanjiv Khanna, along with Justices Sanjay Kumar and K.V. Viswanathan, directed the Ministry of Home Affairs and the Ministry of Finance to provide detailed responses regarding the award of government contracts. During the hearing, CJI Khanna emphasized the need for transparency, asserting, “We must have a clear-cut answer on who received these contracts and whether proper tendering procedures were followed.”
The allegations stem from a petition filed by the NGOs Save Mon Region Federation and Voluntary Arunachal Sena, claiming that contracts worth several hundred crores of rupees have been awarded to Khandu’s relatives in blatant violation of existing rules. Advocate Prashant Bhushan, representing the petitioners, stated that the situation is “shocking” and likened it to governance being run “like a private limited company.”
The court has called for an affidavit from the Arunachal Pradesh government, which should outline all contracts awarded to firms owned by Khandu's family over the last five years. Notably, the petition highlights M/s Brand Eagles, a construction company owned by Khandu's wife. It is alleged that this firm has received a disproportionate number of contracts, approximately 70, without following the proper tendering processes.
Furthermore, the Chief Minister's late father, Dorjee Khandu, is implicated in this web of contracts. It is alleged that while he was in office, contracts were similarly awarded to firms affiliated with the family without adhering to bidding requirements. The petition also reflects on other family members such as Rinchin Drema, Khandu's stepmother, and Tsering Tashi, Khandu's nephew, who reportedly holds numerous contracts through his company, M/s Alliance Trading Co.
In response to these serious allegations, the Arunachal Pradesh government has labeled the PIL as politically motivated, asserting that it aims to defame the current government. Senior Advocate Rajiv Dutta, representing the state, argued that the complaints focus only on one district out of 28, suggesting a selective approach to the allegations. He also posited that political interests drive the petitioners, undermining the state's ongoing development efforts.
The Supreme Court previously directed the Comptroller and Auditor General (CAG) to conduct an inquiry into the contracts in question, revealing discrepancies in accountability and transparency in contract awarding. The court’s decision to probe further escalates the scrutiny faced by Khandu's administration. Following the March 20, 2024 order, the CAG has been tasked with auditing contracts and reporting on practices concerning the allocation of government resources.
As the parties prepare for upcoming hearings, CJI Khanna firmly reiterated the need for clarity in determining the legitimacy of the awarded contracts. The upcoming hearing is set for a week following July 21, 2025. Expectations are high as stakeholders await the court's findings, with transparency and governance integrity hanging in the balance.
The dire implications of this inquiry extend beyond contractual transparency; they touch on the fundamentals of government ethics and accountability. With the threat of political instability looming, it underscores the necessity for adherence to ethical standards in public office, especially regarding conflict of interest and nepotism.
