SC orders probe into contracts awarded to Arunachal CM's relatives
06 Apr 2026

The Supreme Court has ordered a Central Bureau of Investigation (CBI) preliminary inquiry into the alleged irregular allotment of public contracts by the Arunachal Pradesh government to companies owned by relatives of Chief Minister Pema Khandu.

The court has asked the CBI to submit its report within 16 weeks on whether an independent investigation is needed.

The central agency has been asked to examine contracts awarded from November 2015 till 2025.

Contracts worth ₹1,270 crore illegally allotted
Allegations detailed

The petitioners in the case, Save Mon Region Federation and Voluntary Arunachal Senaa, have alleged that contracts worth ₹1,270 crore were illegally allotted to firms linked to Khandu and his family members, including his wife, mother and nephew.

The petitioners had approached the court in 2024, alleging favoritism in the giving away of major tenders to Khandu's close associates, notably the construction company 'M/s Brand Eagles' (belonging to his spouse).

Nephew also awarded work contracts without due procedure: Petitioners
Due process ignored

The petitioners also alleged that Khandu's nephew, Tsering Tashi, a Member of Legislative Assembly from Tawang District, was awarded work contracts through his company M/s Alliance Trading Co. without following due procedure.

During the hearing, the petitioners argued that the contracts accounted for around 3% of total government work awarded in the state during the period and requested an independent investigation.

Court sought responses from central ministries, state government
Government response

They sought an investigation into these allegations either by the CBI or a Special Investigation Team.

In March 2025, the court sought detailed responses from the Ministry of Home Affairs, Ministry of Finance and the Arunachal Pradesh state government on how public work tenders were awarded.

Today, the top court directed the state government to fully cooperate with the probe.

"Chief Secretary...shall designate a nodal officer for coordination with the CBI. State shall ensure no record is destroyed," it said.