Can Close Relatives Of State's Executive Head Be Awarded Govt Contracts? Supreme Court Seeks CAG's Response

The Supreme Court while resuming its hearing in a SLP raising allegations regarding awarding of government tenders by the state government of Arunachal Pradesh, a decade ago, directed the Comptroller and Auditor General of India (CAG) to inform the Bench on the following points:

1. “Whether very close relative(s) to the Executive Head of the State can be awarded Government contracts;
2. In the event this question is answered in the affirmative, what would be the norms for awarding contract to such persons.”

This order has been passed in pursuance to the last order wherein the Court expressed its intention to seek assistance from the CAG in the matter without impleading him as a party.

It may be recalled that the present SLP stems from the allegations that contracts were given by the state government of Arunachal Pradesh without floating any tender. The same has been filed by an NGO named “Voluntary Arunachal Sena” and was represented by Advocate Prashant Bhushan.

The petitioner organisation filed the petition in the Supreme Court in 2010 challenging a decision of the Gauhati High Court to dismiss a PIL filed in 2007. Pertinently, Dorjee Khandu, the Chief Minister during 2007-2011 term is a respondent in the petition in personal capacity. The petitioner had also added the incumbent Chief Minister Pema Khandu (son of Dorjee Khandu) as an additional respondent in his personal capacity later.

The matter was being heard by a Bench comprising Justices Aniruddha Bose and Bela M Trivedi.

ASG Nataraj entered appearance on behalf of CAG. During the hearing, Senior Advocates Rajiv Dutta and Vikas Singh, appearing for the present Chief Minister, submitted that the questions asked by the Bench are hypothetical in nature nevertheless, the Court was categorical in receiving views of the CAG on the aforementioned two points and posted the matter on November 21, 2023.

Imperatively, in the earlier proceeding, Chief Minister Pema Khandu, filed a sealed cover report before the Top Court. Concerns were also raised by Bhushan about threats faced by individuals associated with the case. Following this, Justice Bose assured the parties that the Court was aware of these issues and that they would thoroughly review the report submitted to them.

Case title: Voluntary Arunachal Sena v State of Arunachal Pradesh

Citation: SLP(C) No. 034696 / 2010

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