Supreme Court defers hearing on PIL for probe into award of contracts to family members of Arunachal CM

New Delhi: The Supreme Court on Thursday deferred to the second week of February the hearing on a PIL seeking a CBI or SIT probe into award of contracts for public works to the firms owned by the family members of Chief Minister Pema Khandu.

A bench comprising Chief Justice Sanjiv Khanna and Justice Sanjay Kumar was urged by lawyer Prashant Bhushan, appearing for two petitioner NGOs, Save Mon Region Federation and Voluntary Arunachal Senaa, that all the government contracts were being awarded to the close family members in the state.

At the outset, the CJI said he has not gone through the reply filed by respondents – the state government and the Centre.

“We will list it for hearing in the week commencing February 2, 2025,” the CJI said.

“Please have it early. The state is being run like a private limited company,” Bhushan said, adding that in an earlier case involving the father of the present chief minister, the court had sought a report from the Comptroller and Auditor General.

“We will see when it is argued,” the bench said. A bench headed by former CJI D Y Chandrachud, on January 29, had issued notices to the Centre, the state government, CBI, Khandu and others on the PIL and no substantial hearing took place since then on the last three dates.

Pema Khandu's father Dorjee Khandu’s second wife Rinchin Drema and his nephew Tsering Tashi have been made parties in the case. Dorjee Khandu had died in a helicopter crash in 2011 when he was the chief minister.

The plea claimed Rinchin Drema's firm, Brand Eagles, has been awarded a large number of government contracts despite there being a clear conflict of interest.

"The perusal of the list of contract works settled in favour of family firms, as annexed by the Petitioners herein, shows that it was all done in arbitrary manner by selectively managing the tender in favour of the family firms, as the names of other firms was just cover up for the family firms. The other firms just lent their name to the family firm and got their commission for the same," the plea filed through lawyer Bhushan said.

The PIL claimed when there is evidence of government contracts being awarded only to the firms of family members of the chief minister and his close associates, then it is reasonable to draw an inference that such favour for government contract works of vast magnitude could not have been possible without direct knowledge, consent and active support of the minister concerned.

The petition said the works for flood damage restoration are allotted by the Department of Relief and Rehabilitation, Government of Arunachal Pradesh.

"The minister of this department was Dorjee Khandu, also former CM, till 2011 and then the charge was taken up by his son Pema Khandu, now present Chief Minister.

"It is a serious cause of concern in view of so many work orders executed by a few selective firms belonging to the Minister himself and his family members. This goes against the principles of good governance and transparent administration....," the plea said.