Supreme Court Sets Deadline For Union's Response On Plea For SIT Probe Into Award Of Public Contracts To Arunachal CM's Relatives

The Supreme Court today called on the Union of India to file within 3 weeks its counter-affidavit to a PIL seeking directions for an SIT probe into alleged irregular allotment of public contracts to companies owned by relatives of Arunachal Pradesh Chief Minister Pema Khandu.

A bench of Justices Vikram Nath and Sandeep Mehta passed the order, after Advocate Prashant Bhushan (for petitioners) pointed out that in terms of a March, 2025 order, the State government has filed an affidavit giving details of the contracts, but the Union (that is, the Ministry of Home Affairs and Ministry of Finance) has not.

Notably, at the outset of the hearing, Bhushan commented that the Pema Khandu is running the state like his private limited company. When a counsel submitted that Ministry of Finance needs to be impleaded in the case, the bench retorted that there was a specific direction in the earlier order for the two Ministries to file their responses, which was enough for them to file their reply. Attorney General R Venkataramani and Solicitor General Tushar Mehta were present during the hearing as well, noted Justice Mehta.

The bench ultimately directed: "Union of India prays for and is granted 3 weeks and no more time to file the affidavit".

To recap, the petitioners approached the Court in 2024 alleging partiality in giving away of key tenders to close associates of Khandu, including the construction company 'M/s Brand Eagles' (belonging to his spouse). It was further claimed that Pema's nephew-Tsering Tashi, an MLA from Tawang District owning M/s Alliance Trading Co., was awarded work contracts without following due procedure. The petition prayed for an investigation into the matter either by the Central Bureau of Investigation or a Special Investigation Team.

Notice was issued to the respondents in January, 2024. In March, 2025, the Court sought detailed responses from the Ministry of Home Affairs, Ministry of Finance and the state government with respect to the parties that awarded public work tenders and the manner in which the same were awarded. The response of the state was to state if any firms or individuals involved were related to Khandu or his family members.

Notably, a report was called from the Comptroller and Auditor General in another case pertaining to Khandu's father-Dorjee Khandu, who was also accused of giving important public works contracts to his family companies. While hearing the present case in March, then CJI Sanijv Khanna noted that the CAG report cited Code of Conduct laid down by MHA for both Union and States' Ministers, which should be followed on entering the office. As per the said Code, no minister can give undue advantage to his or her relatives.

Case Title: Save Mon Region Federation And Anr v. The State Of Arunachal Pradesh And Ors., W.P.(C) No. 54/2024