The PIL alleges that projects worth over ₹1,245 crore were awarded to firms connected to the Arunachal CM’s family and close associates, raising concerns of conflict of interest.
BY PC Bureau
April 6, 2026: The Supreme Court of India on Monday ordered a probe by the Central Bureau of Investigation (CBI) into allegations of favouritism in the allotment of public works contracts in Arunachal Pradesh, reportedly linked to firms associated with Chief Minister Pema Khandu’s family.
A Bench comprising Justices Vikram Nath, Sandeep Mehta, and N V Anjaria directed the CBI to initiate a preliminary enquiry within two weeks. The investigation will cover the execution of public works contracts and work orders between January 1, 2015, and December 31, 2025.
“The CBI shall initiate a preliminary enquiry within two weeks,” the court said, adding that the agency is not restricted from examining transactions outside this period if required.
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State directed to cooperate
The court also instructed the Arunachal Pradesh government to extend full cooperation to the probe. It directed the Chief Secretary to appoint a nodal officer to coordinate with the CBI and ensure that no official records are destroyed.
The Bench further asked the CBI to submit a status report within 16 weeks.
Background of the case
The order came on a Public Interest Litigation (PIL) filed by the Save Mon Region Federation, which sought a CBI or Special Investigation Team (SIT) probe into alleged irregularities in contract allocations.
The petitioner alleged that the state government was being run “like a private company” by the Chief Minister, pointing to contracts worth approximately ₹1,245 crore awarded through tenders, along with an additional ₹25 crore in work orders.
Allegations of conflict of interest
According to the petition, several government contracts were awarded to firms linked to Khandu’s family members and close associates, indicating possible conflict of interest and favouritism.
One such firm, M/s Brand Eagles, allegedly owned by the Chief Minister’s wife, is said to have received multiple government contracts. The plea also claims that during the tenure of Khandu’s father, late Dorjee Khandu, the same firm operated under Pema Khandu’s name and secured contracts without due tender processes.
The petition further named Rinchin Drema and Tsering Tashi — the latter linked to M/s Alliance Trading Co. — alleging that multiple contracts were awarded to the company in violation of anti-corruption laws and ministerial conduct rules.
Legal proceedings
The PIL was argued by advocate Prashant Bhushan. Earlier, in March 2025, the Supreme Court had directed the Union Ministries of Finance and Home Affairs to submit reports clarifying their position on the allegations.
With the court now ordering a CBI probe, the case is set to move into a detailed investigation phase, with scrutiny likely over a decade’s worth of public contract allocations in the state.
