NEW DELHI: The Supreme Court on Monday directed the CBI (Central Bureau of Investigation) to conduct a preliminary inquiry into allegations that various public works contracts in Arunachal Pradesh were awarded to firms linked to Chief Minister Pema Khandu’s family members.
“We order the CBI to conduct a preliminary inquiry. The CBI shall submit a status report within 16 weeks on whether an independent investigation is required,” said a bench of the apex court headed by Justice Vikram Nath.
The court passed the order while hearing a Public Interest Litigation (PIL) filed by NGOs, Save Mon Region Federation and Voluntary Arunachal Sena, alleging that government contracts in the state were illegally awarded to CM Khandu and his close family members.
The petitioners sought a probe by a Special Investigation Team (SIT).
The court had reserved its judgment on February 17 after hearing detailed arguments and submissions from both petitioners and respondents.
While directing a preliminary CBI inquiry, the court also issued a series of directions.
“The CBI shall register a preliminary inquiry covering the award and execution of contracts from 2015 to 2025. It shall examine awards made to respondents 4 to 6. The State of Arunachal Pradesh shall fully cooperate with the CBI. The State shall comply with the order within a week.
The Chief Secretary shall designate a nodal officer for the CBI and ensure timely sharing of records. The CBI shall submit a status report within 16 weeks on whether an independent investigation is warranted,” the court ruled.
Advocate Prashant Bhushan, appearing for the petitioner NGOs, Save Mon Region Federation and Voluntary Arunachal Sena, argued that a large number of firms were linked to the Chief Minister.
Referring to an earlier affidavit from July 2025, Bhushan stated that 31 contracts had been awarded over 11 years to Brand Eagles, a firm owned by the Chief Minister’s wife.
He further stated that another company, Frontier Associates, was also owned by the Chief Minister. “The total number of contracts is 91, with a total value of Rs 145 crore. The number of companies they own exceeds 10. As per the new affidavit, 121 works worth Rs 245 crore were awarded through tender to these four firms, while 322 works worth Rs 25 crore were awarded without tender.
In total, Rs 1,270 crore worth of work has been awarded over the past 10 years to these firms, which are directly linked to his wife, himself, or his mother,” he alleged.
Bhushan also claimed that roughly 3% of the state’s contracts were awarded to these firms. When asked by the court about his prayers, he sought a CBI investigation, stating that the matter “reeked of corruption.” “These are 15 firms that we believe should be investigated,” he submitted.
He further argued that since the Chief Minister holds the highest office in the state, the state police would not be able to conduct an impartial investigation.
In an earlier hearing, the court had asked the Arunachal Pradesh government to file a comprehensive affidavit detailing contracts awarded between 2015 and 2025, including those granted to firms owned by the Chief Minister’s family members.
The court had previously stated that it would consider whether any inquiry was required in the matter.