Supreme Court Directs CBI to Probe Multi-Crore Public Works Contracts Awarded to Arunachal CM Pema Khandu’s Kin

The Supreme Court of India on Monday ordered the Central Bureau of Investigation (CBI) to register a preliminary enquiry into allegations of nepotism and corruption involving the award of public works contracts in Arunachal Pradesh. The probe will specifically look into work orders granted to firms allegedly owned by the family members of Chief Minister Pema Khandu.

A bench comprising Justice Vikram Nath and Justice Prasanna B. Varale (bench headed by Justice Nath) mandated that the CBI initiate the Preliminary Enquiry (PE) within two weeks. The investigation will span a decade, covering the period from January 1, 2015, to December 31, 2025.

The core of the legal challenge pertains to a Public Interest Litigation (PIL) alleging a “clear conflict of interest” in the distribution of state resources. The petitioners claim that government contracts and work orders worth approximately ₹1,270 crore were awarded to four specific firms related to the Chief Minister’s family over the last ten years.

The matter reached the apex court through petitions filed by the NGOs Save Mon Region Federation and Voluntary Arunachal Sena. The plea named Chief Minister Pema Khandu as a party respondent. Other key parties include Rinchin Drema (the second wife of the late former CM Dorjee Khandu) and Tsering Tashi (the Chief Minister’s nephew).

Specific allegations were leveled against the firm ‘Brand Eagles,’ owned by Rinchin Drema. The petitioners argued that this entity received a disproportionate number of government contracts, which they contended was a direct result of familial influence within the state administration.

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Advocate Prashant Bhushan, representing the petitioner NGOs, relied on an affidavit previously filed by the Arunachal Pradesh government. He argued that the state’s own records confirmed that a significant number of contracts were diverted to companies owned by the Chief Minister’s relatives.

Conversely, counsel for the State of Arunachal Pradesh defended the administration, characterizing the plea as “sponsored litigation” intended to destabilize the state government rather than serve the public interest.

In December 2024, the Supreme Court had directed the state to file a comprehensive affidavit detailing all contracts awarded since 2015, including those given to firms linked to the CM’s family.

After reserving its order on February 17, the bench concluded that the nature of the allegations warranted an independent preliminary assessment.

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“The CBI shall register a PE (preliminary enquiry) within two weeks from the date of the judgement and will proceed in accordance with law,” Justice Nath stated while pronouncing the operative part of the order.

The Court has set a strict timeline for the federal agency:

  1. Registration of PE: Within 2 weeks.
  2. Scope: Public works, contracts, and work orders from January 1, 2015, to December 31, 2025.
  3. Status Report: The CBI is required to file a progress report before the Supreme Court within 16 weeks.
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While the bench has ordered the enquiry and consequential investigation (if any), the detailed written judgment remains awaited.

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