'Remarkable Coincidence, Shows Cartelisation': SC on Work Contracts Awarded to Arunachal CM's Relatives

However, the court clarified that at the moment that was no inclination to order a CBI inquiry and it would first like the State to furnish additional information.

The Wire Staff

However, the court clarified that at the moment that was no inclination to order a CBI inquiry and it would first like the State to furnish additional information.

remarkable coincidence shows cartelisation sc on work contracts awarded to arunachal cm s relatives

The Supreme Court of India building. Photo: Wikimedia Commons

New Delhi: The Supreme Court on Tuesday (December 2) said that difference between the competing tenders for the work contracts awarded to Arunachal Pradesh CM Pema Khandu and/or his relatives' companies appeared to be miniscule and hinted at cartelisation.

"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...", said Justice Vikram Nath, reported LiveLaw.

The court made the observations as a bench of Justices Nath and Sandeep Mehta was hearing a plea seeking a Central Bureau of Investigation (CBI) probe into the work contracts which were awarded.

However, the court clarified that at the moment that was no inclination to order a CBI inquiry and it would first like the State to furnish additional information.

Representing the petitioners, advocate Prashant Bhushan alleged that 31 contracts for works worth Rs.188 crores were awarded in Tawang alone in the last 10 years, besides works of Rs.2.61 crores through work orders. According to the state’s policy, for works below Rs.50 lakhs, contract could be awarded without tender.

Bhushan also alleged that the State had filed an affidavit restricting 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 alleged.

The PIL has been filed by two NGOs – Save Mon Region Foundation and Voluntary Arunachal Sena, accusing Khandu, his father’s second wife Rinchin Drema, and his nephew Tsering Tashi, as beneficiaries of the contracts.

The court adjourned the matter till February, giving time to the State to file a comprehensive affidavit detailing any work contracts awarded to Khandu, his relatives, or their firms between 2015-2025 across all districts in the state.

This article went live on December third, two thousand twenty five, at twenty-one minutes past four in the afternoon.

The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.