4 Firms Linked to Arunachal CM Awarded ₹383 Crore Worth of Work Orders; “Remarkable Coincidence,” Says SC

Key Points

The Supreme Court on Tuesday, 2 December 2025, flagged what it a “remarkable coincidence” after an affidavit showed a large share of public works in Tawang district, Arunachal Pradesh were awarded to companies connected to Chief Minister Pema Khandu. The bench of Justices Vikram Nath and Sandeep Mehta asked the state to file a comprehensive affidavit covering all districts for the period 2015–2025 so that the court can assess whether a wider inquiry is required.

The affidavit submitted by the state government named four firms linked to the CM’s family: Frontier Associates and Brand Eagles (owned by Tsering Dolma, Khandu’s wife); RD Construction (owned by his brother Tashi Khandu); and Alliance Trading Company (owned by Nima Drema, wife of Tsering Tashi – Khandu’s brother and Tawang MLA). The affidavit shows dozens of contracts to these firms for roads, bridges, drains, irrigation, power lines, retaining walls, community halls, tourism facilities and other civil works, all in one district.

The Indian Express reviewed the affidavit, revealing that the four firms received 146 work contracts in Tawang between 2012 and 2023, valued at about ₹383.74 crore. Of these, 59 were awarded by work order without tenders and at least 11 exceeded the ₹50-lakh cap set in 2020 for non-tendered work. Other accounts presented to the court noted similarly high concentrations — one report said 154 of 300 contracts in Tawang went to firms associated with the CM’s family.

Petitioners in the public interest litigation filed in 2024 — Save Mon Region Federation and Voluntary Arunachal Sena — allege that work orders were steered to the CM’s relatives without following procurement rules and have asked the court to order a CBI or SIT probe. During the hearing, counsel for the petitioners told the court the state’s initial response covered only one of 28 districts, prompting the court to demand a state-wide disclosure.

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The case also builds on earlier oversight: the petition refers to a Comptroller and Auditor General (CAG) report and earlier court orders seeking clear answers from the Centre and the state over alleged irregularities. Petitioners said the CAG had flagged breaches of general financial rules and procurement manuals; the state has countered that the work-order system reflects local conditions and the need to build capacity in a predominantly tribal economy.

The state government defended its practice in the affidavit and before the court. Senior counsel for the state argued that awarding work through local “work orders” has long been normal in Arunachal Pradesh to promote employment and allow local villagers and contractors to participate in development work.

The state invoked the Arunachal Pradesh District Based Entrepreneurs and Professional Incentive Development and Promotional Act, 2015, and a 2020 amendment that allowed non-technical works costing up to ₹50 lakh to be allotted by work order, rather than through a formal tender. It told the court that nearly 95% of contracts were awarded through open tender and that technical and financial bids were evaluated where work called for specialised skills.

The bench, however, pressed on the concentration of awards. “The coincidence is remarkable that, in a state, work orders and tenders are given to family members in huge numbers,” the judges said, noting that while tenders may have been held, cartelisation or minimal competition could explain the skew. The court asked the state to file a fuller affidavit — covering all 28 districts and the period 2015–2025 — within the timeframe set, and posted the matter for further hearing in February 2026. [Rh]

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