Supreme Court Orders Probe into Alleged Contract Irregularities Linked to Arunachal CM Pema Khandu

 Itanagar/New Delhi, April 26, 2025 – The Supreme Court of India has directed the Arunachal Pradesh government and two Union ministries to submit detailed reports on allegations that public works contracts were improperly awarded to firms linked to Chief Minister Pema Khandu’s family. The court’s order, issued on March 18, 2025, follows public interest litigations (PILs) claiming favoritism in contract allotments, spotlighting governance in the northeastern state.

[C.M PEMA KHANDU]

A bench led by Chief Justice Sanjiv Khanna, along with Justices Sanjay Kumar and KV Viswanathan, sought responses from the state government, the Union Ministries of Home Affairs and Finance, and the Comptroller and Auditor General of India (CAG). The PILs, filed by NGOs Save Mon Region Federation and Voluntary Arunachal Sena, allege that contracts worth crores were awarded to companies owned by Khandu’s wife, Rinchin Drema, and nephew, Tsering Tashi, without competitive bidding. The petitioners claim these actions may violate the Prevention of Corruption Act.

The court emphasized transparency, asking for specifics on contract recipients and tender processes. “We want clear answers on who got these contracts and whether tenders were issued,” CJI Khanna stated during the hearing. The next hearing is set for February 2025, with affidavits due beforehand.

The Arunachal Pradesh government, through its counsel, called the allegations “baseless” and “politically motivated,” arguing that the claims pertain to a single district and that no major irregularities were flagged by the CAG. The court, however, insisted on a comprehensive response, rejecting the state’s attempt to downplay the issue.

The allegations trace back to the tenure of Khandu’s late father, former Chief Minister Dorjee Khandu (2007–2011), with claims that favoritism in contract awards persisted under Pema Khandu’s leadership since 2016. A similar PIL in March 2024 prompted the Supreme Court to order a CAG investigation, but a follow-up plea in November 2024 was withdrawn after the court declined to pursue it further.

Khandu, one of India’s wealthiest chief ministers with declared assets of ₹332 crore, has not addressed the latest court proceedings. In early March 2025, he announced the formation of an Anti-Corruption Bureau (ACB) to strengthen the state’s Special Investigation Cell, a move some critics view as a response to mounting scrutiny.

The Supreme Court’s probe has stirred public debate in Arunachal Pradesh, where infrastructure projects are vital for development. Residents are divided, with some welcoming the judicial oversight and others viewing the PILs as attempts to hinder progress. The February 2025 hearing could shape perceptions of Khandu’s administration and the BJP’s governance in the state