Following CBI's report alleging non-cooperation in a case pertaining to Arunachal Pradesh Chief Minister Pema Khandu, the Supreme Court today summoned the state's Chief Secretary and Principal Secretary (Home) to explain the non-compliance with court directions.

While issuing notice to the two officers, a bench of Justices Vikram Nath and Sandeep Mehta ordered that they shall remain present in court on the next date, alongwith their response to the CBI report.

"A perusal of the same reflects that there is no cooperation at the end of the State Government in providing the necessary records as was directed vide judgment and order dated 06.04.2026. As such, we deem it appropriate to issue notice to the Chief Secretary and the Principal Secretary (Home), Government of Arunachal Pradesh, making it returnable on 24.08.2026...Both the aforesaid officers shall remain present before this Court along with their response to the afore-mentioned report of the C.B.I. and also explain as to why there is non-cooperation and non-compliance of the directions issued by this Court" the order stated.

To recap, on April 6, the Court directed the CBI to conduct a preliminary inquiry into the alleged irregular allotment of public contracts by the Arunachal Pradesh Government to companies owned by relatives of Chief Minister Pema Khandu.

The Court directed the CBI to submit a report within 16 weeks as to whether an independent investigation was warranted. The CBI was directed to examine contracts awarded from January 1, 2015, to December 31, 2025, however, it was not precluded from examining the work contracts beyond the above period.

Specifically, the Court had directed the State and its concerned department to cooperate with the CBI and make available all relevant records within four weeks. The State was to ensure that no record was destroyed. The Chief Secretary of the State was ordered to designate a nodal officer within a week for coordination with the CBI.

The order was passed in a petition filed by the organisations Save Mon Region Federation and Voluntary Arunachal Senaa. The petitioners alleged that contracts and tenders of the State had been awarded to firms associated with the Chief Minister, his spouse, mother, and nephew. Advocate Prashant Bhushan, for the petitioners, alleged that contracts worth Rs 1270 crores were illegally allotted to the CM's kin.

The petitioners approached the Court in 2024, alleging partiality in the giving away of key tenders to close associates of Khandu, including the construction company 'M/s Brand Eagles' (belonging to his spouse). It was further claimed that Pema's nephew, Tsering Tashi, an MLA from Tawang District owning M/s Alliance Trading Co., was awarded work contracts without following due procedure. The petition prayed for an investigation into the matter either by the Central Bureau of Investigation or an SIT.

Notice was issued to the respondents in January, 2024. In March 2025, the Court sought detailed responses from the Ministry of Home Affairs, the Ministry of Finance and the state government with respect to the parties that awarded public work tenders and the manner in which the same were awarded.

Notably, in 2024, a report was called from the Comptroller and Auditor General in another case pertaining to Khandu's father, Dorjee Khandu, who was also accused of giving important public works contracts to his family companies. While hearing the present case in March last year, then CJI Sanjiv Khanna noted that the CAG report cited the Code of Conduct laid down by MHA for both Union and States' Ministers, which should be followed on entering the office. As per the said Code, no minister can give undue advantage to his or her relatives.

Case Title: Save Mon Region Federation And Anr v. The State Of Arunachal Pradesh And Ors., MA 2216 - / 2026 in W.P.(C) No. 54/2024

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