'Remarkable coincidence': SC on contracts awarded to Arunachal CM's relatives
What's the story
The Supreme Court has observed that the difference between competing tenders for public works in Arunachal Pradesh was "minuscule" and suggested possible cartelization, Live Law reported. The court was hearing a plea seeking a Central Bureau of Investigation (CBI) probe into contracts awarded to Chief Minister Pema Khandu and his relatives. The bench, comprising Justices Vikram Nath and Sandeep Mehta, adjourned the matter till February 2026, asking the state to submit an affidavit detailing all such contracts from 2015-2025.
Allegations presented
Petitioners allege favoritism in contract awards
The petitioners, represented by advocate Prashant Bhushan, alleged that 31 contracts worth ₹188 crore were awarded in Tawang alone over the past decade, besides ₹2.61 crore work awarded through work orders. They claimed these contracts were given to companies owned by Khandu and his relatives due to their local trustworthiness. Bhushan also referred to a report by the Comptroller and Auditor General (CAG), which alleged hefty payments for rice transportation despite cheaper options.
Court inquiry
Justice Nath questions contract distribution
Justice Nath asked if a lot of contracts were being given to Khandu's family members. He said the state's counter indicated many work orders were given to companies owned by Khandu and his relatives. Senior advocate Rauf Rahim, representing the state, argued that no ratio or proportion was mentioned in their affidavit regarding tender awards. However, Justice Mehta noted "the coincidence is remarkable" with alleged differences being minuscule (0.01%), indicating possible cartelization.
Investigation request
Petitioners seek investigation into contract awards
The petitioners have sought an investigation by either the CBI or a Special Investigation Team (SIT) into these alleged irregularities. They claimed that Khandu's nephew, MLA Tsering Tashi, was also awarded contracts without due procedure. The court had earlier issued notices to respondents in January 2024 and sought detailed responses from relevant ministries and the state government in March 2025 regarding public work tender awards.
Conduct guidelines
CAG report highlights code of conduct for ministers
Notably, a CAG report in another case related to Khandu's father, Dorjee Khandu, was cited during the hearing. Former Chief Justice Sanjiv Khanna had noted that according to the Code of Conduct laid down by the Ministry of Home Affairs, ministers must not give undue advantage to relatives on assuming office. The court has now asked Arunachal Pradesh to file a detailed affidavit regarding all districts before February next year.