SC hints at ‘Cartelisation' in work contracts awarded to Arunachal CM's relatives

New Delhi: The Supreme Court on Tuesday pointed to ‘cartelisation’ in contracts that were awarded to Arunachal Pradesh CM Pema Khandu and/or his relatives’ companies, The Wire reported.

A bench of Justices Nath and Sandeep Mehta made the observations while hearing a plea seeking a Central Bureau of Investigation (CBI) probe into the work contracts.

Justice Vikram Nath reportedly said: ‘The coincidence is remarkable…where the difference was allegedly miniscule (0.01%), that shows cartelisation. If that is so, that becomes serious. Scope of enquiry may even extend to finding out whether any other person is being allowed to participate in the [tender process]. Statistics are telling’.

Refusing to order a CBI inquiry into the case, the court however directed the State to furnish additional information regarding the case.

Advocate Prashant Bhushan, appearing for the petitioners—Save Mon Region Foundation and Voluntary Arunachal Sena—said that in the last ten years 31 contracts worth Rs.188 crores were given in Tawang alone alongside awarding Rs.2.61 crores worth works through work orders.

It is reported citing the state’s policy that for works below Rs.50 lakhs contract could be awarded without tender.

Bhushan further alleged that the State in its affidavit restricted itself to the district of Tawang.

‘They say we want to give the contracts to companies which are trusted by local people…and the companies trusted by the local people are companies of the CM, his wife, etc. because he comes from that area…in almost all cases, 2 companies filled the tender. CM’s company gives tender which is 0.01 % less and therefore they are awarded…’ Bhushan reportedly alleged.

The PIL accused Khandu, his father’s second wife Rinchin Drema, and his nephew Tsering Tashi, as beneficiaries of the contracts.

Adjourning the matter till February, the court sought to file a comprehensive affidavit over work contracts awarded to Khandu, his relatives, firms between 2015 and 2025 in all districts in the state.

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