New Delhi: The Supreme Court of India has taken a firm stance on allegations of favoritism in government contract awards in Arunachal Pradesh, directing the state to furnish a detailed statewide report amid revelations that companies linked to Chief Minister Pema Khandu’s relatives dominated public works in Tawang district.
A government affidavit submitted in December 2025 disclosed that four family-associated firms bagged 146 contracts between 2012 and 2023, including 59 direct work orders totaling Rs 16.83 crore issued without competitive tenders. This development, arising from a Public Interest Litigation (PIL) by NGOs Save Mon Region Federation and Voluntary Arunachal Sena, highlights potential violations of procurement norms and raises questions about conflict of interest in one of India’s most remote states.
The affidavit, reviewed by the Court following its March 2025 directive, specifies that the contracts—spanning road construction, bridge maintenance, irrigation channels, power lines, and community buildings—were primarily handled by departments like Public Works, Rural Works, and Water Resources. Firms owned by Khandu’s wife, Tsering Dolma, including Frontier Associates and Brand Eagles, secured huge chunk of contracts, while his brother Tashi Khandu’s RD Construction bagged 13 contracts. Sister-in-law Nima Drema’s Alliance Trading Company, connected to MLA Tsering Tashi, claimed 31 projects, with petitioners alleging these entities captured nearly 95% of Tawang’s government works despite limited competition. At least 11 work orders exceeded the Rs 50 lakh limit for non-tender exemptions, intended for local support, suggesting procedural lapses that could have led to inflated costs or suboptimal execution.
In the December 2, 2025 hearing, Justices Vikram Nath and Sandeep Mehta termed the allocation patterns a “remarkable coincidence” and “telling statistics,” rejecting the state’s defense that all awards complied with open tendering under the General Financial Rules (GFR) 2017. The bench has mandated a comprehensive affidavit detailing contracts across Arunachal’s 28 districts from 2015 to 2025, including ownership verification, bidding records, and any cartel-like behaviors, with submission due within eight weeks.
The Centre was earlier granted three weeks in September 2025 to respond on potential CBI or Special Investigation Team (SIT) involvement, building on a March 2025 order for a CAG audit of prior irregularities. The next listing is scheduled for February 2026, where the Court will assess if deeper probes are warranted, emphasizing transparency in high-stakes public procurement. Historical Context and Escalating AllegationsThe PIL traces the issues to Khandu’s father, late Chief Minister Dorjee Khandu (2007-2011), when firms like Brand Eagles—initially under Pema’s name—allegedly received no-bid contracts, a practice purportedly continuing post-Pema’s 2016 ascension after his BJP switch.
Advocate Prashant Bhushan, representing the petitioners—who impleaded Rinchin Drema (Dorjee’s second wife) and Tsering Tashi—accused the administration of operating like a “private limited company,” with incomplete records concealing broader graft. These claims echo earlier 2022 allegations of job-for-cash scams, denied by Khandu, underscoring persistent governance challenges in Arunachal.
The disclosures have ignited public and political backlash, with Arunachal ministers like Pasang Dorjee Sona labeling them “politically motivated” ahead of the December 15, 2025 panchayat and municipal polls, while the CMO contested media reports as “partial and unfounded”. Civil society and opposition figures demand an independent inquiry, warning of eroded trust and financial losses in a state reliant on central funds for infrastructure. Social media amplifies calls for accountability, with hashtags like #PemaKhanduScam trending amid debates on nepotism in tribal regions . If proven, the case could spur reforms, including stricter e-procurement enforcement via Arunachal’s portal and GFR adherence, setting precedents for conflict-of-interest prevention in India’s decentralized procurement landscape.
