Supreme Court orders Centre to respond to plea against Arunachal CM Pema Khandu in 3 weeks

The Supreme Court on Monday granted three weeks to the Central government to file its response in a case alleging that various contracts of the public works in Arunachal Pradesh were awarded to firms linked to Chief Minister Pema Khandu's family members.

A Bench of Justice Vikram Nath and Justice Sandeep Mehta refused to accept the argument that the Union Ministry of Finance is not a party to the case.

"Don't tell us all these technicalities. There is a specific direction that the Ministry of Home Affairs and Ministry of Finance shall also file an affidavit. That is more than enough to file an affidavit," the Court remarked.

In March, the top court had asked the Union Ministry of Finance and Union Ministry of Home Affairs to file a report and come clear on the allegations.

"We want the Ministry of Finance and Ministry of Home Affairs report. The CAG report is neither here nor there. We must have a clear cut answer and who are the parties to whom the contract is awarded and what is the process. If tenders were not called for, it must be stated. Both the ministries must come out clear. We also need to see who are the ones behind it," the Bench had said.

The top court was hearing a Public Interest Litigation (PIL) petition seeking a probe by the Central Bureau of Investigation (CBI) or a Special Investigation Team (SIT) into the allegations.

Today, advocate Prashant Bhushan for the petitioner Save Mon Region Federation argued that State of Arunachal Pradesh was being run like a private company by the Chief Minister.

"The Union of India, i.e., the Ministry of Home Affairs and Ministry of Finance, were directed to file the detailed affidavit. The UOI hasn't filed any affidavit. In fact, their affidavit should not only be in response to the petition, but it should also be in response to affidavit filed by state as well as a report of CAG," he said.

The Court then granted the Centre a final opportunity to respond to the PIL.

"Affidavit in response to order dated 18th March 2025 has already been filed by the state of Arunachal Pradesh. However, the Union of India hasn't filed the Affidavit yet. Therefore, UOI is granted three weeks and no more time to file the Affidavit," the Court ordered.

According to the plea before the top court, the award of government contract works to the firms of family members of the Chief Minister and his close associates was evidence of favoritism in government contracts with direct knowledge, consent and active support of the CM.

As per the petitioner, the construction company M/s Brand Eagles, owned by Khandu's wife, has been awarded a large number of government contracts despite there being a clear conflict of interest. 

As per the plea, when Pema Khandu's father, late Dorjee Khandu, was the CM of Arunachal Pradesh, the firm was in Pema's name and was awarded contracts without tender processes.

Dorjee Khandu's second wife Rinchin Drema and his nephew Tsering Tashi have been impleaded as respondents. Tashi is the MLA for Tawang District and owns M/s Alliance Trading Co.

According to the petitioner, numerous contracts have been awarded to M/s Alliance Trading Co. in clear violation of the Prevention of Corruption Act and code of conduct for ministers.