SC seeks fresh CBI status report on Arunachal contract allotment allegations

The Supreme Court on Monday directed the Central Bureau of Investigation (CBI) to submit a fresh status report on its preliminary enquiry into allegations of preferential allotment of government contracts in Arunachal Pradesh to firms allegedly owned by or linked to family members of Chief Minister Pema Khandu.

A bench of Justices Vikram Nath and Sandeep Mehta also granted the Arunachal Pradesh government two weeks to place its position on record after the state said it had complied with the court's earlier directions and provided the CBI with the records and documents required for the probe.

The development came after the CBI had told the Supreme Court in a status report submitted last month that the state government was not cooperating with the investigation and had failed to provide documents sought by the agency.

Solicitor General Tushar Mehta, appearing for the Arunachal Pradesh government, told the bench on Monday that the state had now handed over all the documents to the CBI.

“I (state) would need a week to place the facts on record,” Mehta said.

He said that the chief secretary and principal secretary (Home) of Arunachal Pradesh were present in court pursuant to the Supreme Court's August 3 order.

“We will be able to satisfy the court that they (directions) are complied with in letter and spirit,” he said, adding that the state had provided all the documents to the probe agency.

The bench, however, said the state would have two weeks to formally place its stand on record.

When the court was informed that various documents had already been handed over to the CBI, it asked the agency to confirm whether it had received them.

CBI preliminary enquiry ordered in April

The Supreme Court had on April 6 directed the CBI to register a preliminary enquiry within two weeks into allegations of preferential allotment of contracts in Arunachal Pradesh.

The order came on a petition filed by NGOs Save Mon Region Federation and Voluntary Arunachal Sena, which had sought an investigation by the CBI or a Special Investigation Team into the alleged irregularities.

The petitioners have alleged that government contracts and work orders were preferentially awarded to firms allegedly connected with members of Khandu's family.

During an earlier hearing, the Supreme Court was told that contracts and work orders worth around ₹1,270 crore had allegedly been awarded over a 10-year period to four firms linked to Khandu's family members.

The court's April order directed the CBI to conduct a time-bound preliminary enquiry into the award and execution of public works contracts and work orders that formed part of the proceedings.

The probe covers contracts and work orders awarded between January 1, 2015 and December 31, 2025, including works and documents placed before the court during the proceedings.

The Supreme Court had also directed the Arunachal Pradesh government, its departments and other authorities to fully cooperate with the CBI.

It had observed that the state and its instrumentalities could not confer benefits according to the “whims of any political or administrative functionary”.

The court had described the matter as a fit case for an independent investigation.

Petitioners question need for preliminary enquiry

During Monday's hearing, advocate Prashant Bhushan, appearing for the petitioner organisations, questioned whether the material already collected and examined by the CBI was sufficient for the agency to register a regular case instead of continuing with a preliminary enquiry.

Bhushan asked whether the evidence gathered during the preliminary investigation so far did not warrant registration of a regular case.

The bench said the question would have to be examined by the CBI.

The court also agreed to hear a separate petition concerning the issue and asked the Solicitor General to obtain instructions from the state and file a counter-affidavit, if required.

The bench noted that the chief secretary and principal secretary (Home) had filed affidavits in the matter. It allowed the petitioners two weeks to respond to those affidavits.

Earlier row over alleged non-cooperation

The issue of cooperation by the Arunachal Pradesh government had come up prominently during the Supreme Court's August 3 hearing.

At the time, the court sought responses from the chief secretary and principal secretary (Home) after the CBI alleged that the state government had not provided the records required for the preliminary enquiry.

The CBI's position had prompted the court to seek an explanation from senior state officials.

The Arunachal Pradesh government has now told the court that the required documents have been supplied and that it has complied with the directions issued by the Supreme Court.

At the end of Monday's hearing, Bhushan requested that the CBI be directed to submit an updated status report before the next hearing.

“The CBI shall also submit a fresh status report,” the bench directed.

The fresh report is expected to indicate the progress of the preliminary enquiry and clarify whether the documents sought from the state have been received and examined.

The proceedings concern allegations relating to the award and execution of public works contracts in Arunachal Pradesh. The allegations are subject to the ongoing judicial and investigative process, and the Supreme Court has not made a finding of wrongdoing against the chief minister or the firms named in the proceedings.