Rs 1.2K cr contract scam: SC orders CBI probe into firms linked to Arunachal CM’s kin

In a development that casts a shadow over PM Modi’s oft-repeated slogan of “na khaunga, na khane dunga,” the Supreme Court has ordered CBI (Central Bureau of Investigation) to conduct a preliminary inquiry into allegations that government contracts in Arunachal Pradesh were awarded to companies linked to relatives of Chief Minister Pema Khandu.

The court has directed the CBI to initiate the preliminary enquiry within two weeks and submit its findings within 16 weeks.

A bench comprising Justices Vikram Nath, Sandeep Mehta, and N V Anjaria ordered the probe into contracts and work orders issued between January 1, 2015, and December 31, 2025.

“CBI shall initiate a preliminary enquiry within two weeks. The enquiry and any consequential investigation shall cover execution of public works contracts and work orders within the period January 1, 2015, to December 31, 2025,” the bench said in its order.

The direction came in response to public interest litigations filed by the Save Mon Region Federation and the Voluntary Arunachal Senaa. The petitioners alleged that contracts and tenders worth over Rs 1,200 crore were awarded to firms linked to Khandu, his wife, and nephew.

The petitioners alleged that during the tenure of late Chief Minister Dorjee Khandu, a firm purportedly linked to his son, Pema Khandu, was awarded government contracts without following due tendering processes.

The petitioner  further stated that Dorjee Khandu’s second wife, Rinchin Drema, and his nephew, Tsering Tashi, were impleaded as respondents in the case. Tashi, who represents Tawang district in the state assembly, is also the proprietor of M/s Alliance Trading Co.

As per the allegations, multiple contracts were awarded to M/s Alliance Trading Co. in alleged violation of provisions of the Prevention of Corruption Act as well as the code of conduct for ministers.

Advocate Prashant Bhushan appeared on behalf of the petitioners.

The court’s intervention brings fresh scrutiny to the awarding of public works contracts in the state over the past decade.

The Court also directed the BJP led state government to fully cooperate with the probe.

"State of Arunachal Pradesh shall cooperate fully with the CBI. Chief Secretary of the State shall designate a nodal officer for coordination with the CBI. State shall ensure no record is destroyed," the order said.