Guwahati: The Supreme Court on Tuesday directed the Union Home and Finance Ministries to provide a clear explanation regarding the award of government contracts amounting to several hundred crores to the wife and family members of Arunachal Pradesh Chief Minister Pema Khandu.
A bench led by Chief Justice Sanjiv Khanna emphasized the need for transparency, stating, “We must have a clear-cut answer… who were the parties awarded these contracts? What was the process followed? If tenders were not invited, it must be clearly stated. Both ministries must come clean. We need to understand who is behind this.”
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The court has instructed the state government to file a detailed affidavit within five weeks, listing all parties involved in the contracts. Additionally, the Comptroller and Auditor General (CAG) of India has been asked to submit a final report, after its earlier findings were deemed inconclusive. The matter will next be heard on July 21.
The Arunachal Pradesh government submitted certain details of contracts awarded since 2019 but cited the previous CAG report in its defense. However, the Supreme Court dismissed this report, calling it “neither here nor there.”
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The case stems from a Public Interest Litigation (PIL) filed by two NGOs Save Mon Region Federation and Voluntary Arunachal Senaa alleging that “hundreds of contracts worth several hundred crores” had been awarded to the Chief Minister’s family. The petitioners have called for an investigation by the Central Bureau of Investigation (CBI) or a Special Investigation Team (SIT).
Senior advocate Prashant Bhushan, representing the petitioners, claimed the state was being mismanaged, stating, “The situation is shocking. The state is being run like a private limited company. Most contracts are awarded to the Chief Minister’s wife’s company, his cousin’s company, and other close associates.” He also highlighted that the previous CAG report had indicated the involvement of the Union ministries in setting the rules for awarding contracts.
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In response, the state government dismissed the allegations, calling the PIL “an abuse of due process.” The state’s legal counsel argued that the controversy was confined to just one of Arunachal Pradesh’s 28 districts and labeled the petition politically motivated. “Arunachal Pradesh has unique circumstances, and the government is acting as per law. The petitioners are simply individuals who oppose development in the state,” the state’s counsel stated.
As the legal battle continues, the Supreme Court’s directive is expected to bring further scrutiny to the allocation of government contracts in the northeastern state.