The Supreme Court has raised questions about how government contracts were awarded in Arunachal Pradesh, after learning that companies linked to Chief Minister Pema Khandu’s family received a large share of public works in Tawang district over several years. The court has called the pattern “a remarkable coincidence” and has asked the state government to submit a full and clear record of all such contracts.
According to an affidavit submitted to the Supreme Court, four companies belonging to the Chief Minister’s close family members were given 146 government contracts in Tawang between 2012 and 2023. These contracts together were worth about Rs 383.74 crore. Two of the firms are owned by Khandu’s wife, Tsering Dolma. One firm belongs to his brother, Tashi Khandu, and another to his sister-in-law, Nima Drema.
The affidavit shows that many of these contracts were not awarded through open tendering. Instead, 59 contracts worth Rs 16.83 crore were issued directly through work orders, without any competitive bidding. At least 11 of these work orders crossed the maximum limit of Rs 50 lakh that had been set in 2020 for issuing contracts without tenders. That limit was originally meant to support small local professionals and young entrepreneurs. 
The nature of the work covered by these contracts included the construction and maintenance of roads, bridges, drains, irrigation channels, power lines, retaining walls, cultural halls, community centres and various residential buildings.
Reviewing the petition that raised these concerns, a bench of Justices Vikram Nath and Sandeep Mehta noted that the allegations involve “high functionaries” of the state and a “considerable number” of work orders going to companies owned by the Chief Minister’s relatives. The court said the pattern could not be ignored and required deeper examination.
The Arunachal Pradesh government has not disputed the ownership of the firms mentioned in the petition. The bench said that because the volume of contracts was significant, the state must come forward with a detailed and transparent explanation.
The Supreme Court has now directed the government to file a comprehensive affidavit listing all government contracts issued between 2015 and 2025 to the Chief Minister, his family members or their companies in every district of the state. The matter will be heard again in February, when the court will decide whether a formal enquiry or further action is necessary.
The bench also referred to a Comptroller and Auditor General (CAG) report that had flagged irregularities in the tendering process in some government departments. While the court said the CAG report was “neither here nor there” for the present stage, it stressed the need for clear statements from concerned departments because public money and public trust were involved.
