The Supreme Court of India has asked the Central Bureau of Investigation to conduct a preliminary inquiry into allegations that contracts worth ₹1,270 crore were awarded to relatives of Pema Khandu.
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A political storm gathered speed on Monday as the Supreme Court of India stepped in and ordered a preliminary probe into allegations involving public contracts and relatives of Pema Khandu. The court’s direction has now placed the spotlight on government tenders issued over the last decade, and whether rules were followed.
Supreme Court orders CBI to conduct preliminary inquiry into the allegations that various contracts of the public works in Arunachal Pradesh were awarded to firms linked to Chief Minister Pema Khandu’s family members.
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Supreme Court asks CBI to submit a status report within 16… pic.twitter.com/20Bjsbrplw
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— ANI (@ANI) April 6, 2026
A bench of Justice Vikram Nath, Justice Sandeep Mehta, and Justice NV Anjaria directed the Central Bureau of Investigation to conduct a preliminary inquiry into the alleged irregular allotment of public contracts in Arunachal Pradesh.
The court asked the CBI to examine contracts awarded between January 1, 2015 and December 31, 2025.
At the same time, the agency has also been allowed to look beyond this period if needed. The CBI must submit its report within 16 weeks, stating whether a full-fledged independent investigation is required.
The case reached the top court through a petition filed by two organisations: Save Mon Region Federation and Voluntary Arunachal Senaa. Senior Advocate Prashant Bhushan appeared on behalf of the petitioners.
According to the petition, government tenders and contracts were allegedly awarded to firms connected to the Chief Minister’s spouse, mother, and nephew. The petitioners claimed that contracts worth ₹1,270 crore were allotted to relatives of the Chief Minister.
The plea specifically mentioned a construction firm named M/s Brand Eagles, said to be owned by Khandu’s spouse. It also raised questions about contracts allegedly awarded to M/s Alliance Trading Co., linked to Khandu’s nephew.
The petition alleged that Tsering Tashi, an MLA from Tawang district and the Chief Minister’s nephew, received work contracts through his company without following proper procedures.
The organisations claimed that key tenders were granted to close associates creating situation of possible conflict of interest. They requested either CBI investigation or Special Investigation Team (SIT) to examine the matter.
The court had earlier issued notice to respondents in January 2024, beginning the legal process that has now led to the latest order.
The Supreme Court also issued strict instructions to the Arunachal Pradesh government. It directed the state and its departments to cooperate fully with the CBI and provide all relevant records within four weeks.
Importantly, the court stated that no records should be destroyed. It also ordered the Chief Secretary to appoint a nodal officer within one week to coordinate with the investigating agency.
The matter has been evolving for more than a year. In March 2025, court sought detailed responses from Ministry of Home Affairs, Ministry of Finance, and Arunachal Pradesh government.
Court wanted clarity on which authorities awarded public work tenders and how those tenders were granted.
The controversy also connects to earlier developments involving the late Dorjee Khandu, father of the current Chief Minister. In 2024, a report from the Comptroller and Auditor General of India had been called in another case concerning alleged allotment of public contracts to family-linked companies.
During hearings last year, then Chief Justice Sanjiv Khanna noted that the CAG report referred to a Code of Conduct issued by the Ministry of Home Affairs. This code states that ministers should not grant undue advantage to relatives after assuming office.
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