Supreme Court Directs CBI Preliminary Inquiry into Allegations of Corruption and Nepotism Against Arunachal Pradesh CM Pema Khandu and Family
New Delhi, April 6, 2026: In a significant development, the Supreme Court of India on Monday directed the Central Bureau of Investigation (CBI) to conduct a preliminary enquiry into allegations that public works contracts worth approximately ₹1,270 crore were awarded to firms allegedly linked to Arunachal Pradesh Chief Minister Pema Khandu and his family members over a 10-year period.
The order came on a Public Interest Litigation (PIL) filed by two NGOs — Save Mon Region Federation and Voluntary Arunachal Sena — represented by advocate Prashant Bhushan. The petitioners alleged widespread irregularities, including corruption, nepotism, and bypassing of open tender processes in the allotment of government contracts in the state.
Details of the Allegations
According to the plea, between January 2015 and December 2025, contracts and work orders totaling around ₹1,270 crore were granted to four firms purportedly connected to the Chief Minister’s close relatives. These included companies allegedly linked to Khandu’s wife, mother, and other family members. The petitioners claimed that several awards violated public procurement norms and the Code of Conduct for ministers, raising serious concerns over conflict of interest and favouritism.
The PIL highlighted that the state police would not be in a position to conduct an impartial investigation, necessitating intervention by a central agency like the CBI.
Supreme Court’s Directive
A bench comprising Justices Vikram Nath, Sandeep Mehta, and N.V. Anjaria ordered the CBI to register a preliminary enquiry (PE) within two weeks. The probe is to examine whether the allegations of favouritism and irregularities in the award and execution of contracts are substantiated. The court stressed that the inquiry must be conducted fairly and without prejudice to any individual.
The CBI has been asked to submit a status report within 16 weeks. The Arunachal Pradesh government has been directed to extend full cooperation to the investigating agency, with the Chief Secretary designated as the nodal officer for coordination. The state must also ensure that no relevant official records are destroyed or tampered with.
The court clarified that while the primary focus is on the 2015–2025 period, the CBI is not barred from examining any related transactions outside this timeframe if necessary.
Background and Earlier Proceedings
The case has been under judicial scrutiny for several months. Earlier hearings saw the Supreme Court reserve orders after detailed arguments. The Union government had informed the court that it lacked jurisdiction over the matter, as issues relating to the Code of Conduct for ministers and state-level procurement rules fall under the domain of the state government. The Centre maintained that guidelines issued by the Union Finance Ministry on procurement are not binding on states.
During previous hearings, the court had also taken note of the minuscule differences in competing bids in some cases, observing that such patterns could indicate cartelisation.
About Pema Khandu
Pema Khandu, a senior BJP leader from the Monpa tribe, has been serving as Chief Minister of Arunachal Pradesh since July 2016 and is currently in his third term. He represents the Mukto assembly constituency. The allegations remain unproven at this stage, and the CBI’s preliminary enquiry is intended as a fact-finding exercise to determine if a full-fledged investigation is warranted.
This order underscores the judiciary’s emphasis on transparency and accountability in the award of public contracts, particularly when senior political functionaries and their families are allegedly involved. The outcome of the CBI probe is expected to have significant political and administrative implications in the border state.
The matter will be monitored by the Supreme Court as the investigation progresses.
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