New Delhi, April 6 – The Supreme Court on Monday directed the Central Bureau of Investigation (CBI) to conduct a preliminary inquiry into allegations of irregularities in the awarding of public works contracts in Arunachal Pradesh, including those allegedly linked to the family members of Chief Minister Pema Khandu.
A bench of Justices Vikram Nath, Sandeep Mehta, and N.V. Anjaria directed the investigation agency to register a preliminary inquiry within two weeks and proceed in accordance with the law.
The apex court further ordered that the inquiry would examine the awarding and execution of public works, contracts, and work orders between January 1, 2015, and December 31, 2025, while clarifying that the CBI would not be precluded from looking into transactions outside this period to trace "beneficial ownership, related party links, fund flows, or other connected circumstances".
In disposing of a public interest litigation (PIL) filed by NGOs Save Mon Region Federation and Voluntary Arunachal Sena, the Justice Nath-led bench observed: "The Central Bureau of Investigation (CBI) shall register a preliminary inquiry within two weeks from the date of this judgment and shall proceed in accordance with the law."
The top court also directed the CBI to scrutinize procurement processes, tender approvals, reasons for dispensing with open tenders, and compliance with statutory requirements, along with examining records relating to payments, work orders, and execution.
Importantly, the Supreme Court mandated that the CBI submit a status report within 16 weeks, indicating whether a full-fledged independent investigation is warranted.
The state government has been directed to fully cooperate with the investigation, with the Chief Secretary required to designate a nodal officer within one week to coordinate with the CBI.
All relevant records, including tender documents, administrative approvals, agreements, bills, and electronic procurement data, are to be furnished within four weeks.
The Justice Nath-led bench also issued a clear direction for preservation of evidence, stating that no physical or electronic record related to the case should be "destroyed, altered, or rendered inaccessible".
In its order, the apex court clarified that its observations are limited to determining whether an independent probe is required, and "shall not be construed as findings on the merits of any allegation, nor prejudice any person in future proceedings."
The directions came in response to a PIL alleging that public contracts worth around Rs 1,270 crore were awarded to firms linked to the relatives of the Chief Minister, including his spouse and other family members.
During the proceedings, advocate Prashant Bhushan, appearing for the petitioners, alleged that several contracts were awarded without following due procedure, including cases where open tender norms were allegedly bypassed.
In March last year, the apex court directed the Arunachal Pradesh government to furnish detailed affidavits on contracts awarded, including those linked to private respondents, and had also sought a report from the Comptroller and Auditor General (CAG). Subsequently, in December 2025, the Justice Nath-led Bench expanded the scope of inquiry to cover all districts of Arunachal Pradesh, noting that the issue was not confined to the Tawang district alone.