The Supreme Court of India has directed the Comptroller and Auditor General (CAG) to investigate allegations of corruption surrounding tender contracts issued by the Arunachal Pradesh government approximately a decade ago. 

The directive came on March 20, following a Special Leave Petition (SLP) filed by a petitioner-NGO in 2010, challenging a decision of the Gauhati High Court related to the matter.

The petitioners, represented by Advocate Prashant Bhushan, raised serious concerns regarding the manner in which contracts were allegedly awarded by the state government without following proper tender procedures. 

They highlighted that contracts were purportedly granted to close relatives of the then-Chief Minister of Arunachal Pradesh, Dorjee Khandu, during his tenure from 2007 to 2011. Notably, the current Chief Minister, Pema Khandu, who is the son of Dorjee Khandu, also figures as a respondent in his personal capacity in this case.

One of the initial issues that the Supreme Court Bench, comprising Justices Aniruddha Bose and Bela M Trivedi, considered was the significant time gap between the alleged occurrences and the date of the hearing. However, Advocate Prashant Bhushan argued that there were clear indications of corruption as contracts were awarded without proper tender processes, particularly benefiting the CM's close relatives.

On the other side, the State of Arunachal Pradesh contended that since the alleged beneficiary of the contracts and the former Chief Minister, Dorjee Khandu, had passed away, the SLP against him had abated. This raised questions about the legal course of action in such cases and the liability of deceased officials concerning alleged corrupt practices during their tenures.

In response to these complex legal and ethical dilemmas, the Supreme Court sought assistance from the CAG in October 2023. The Court asked the CAG to provide insights on two critical aspects: firstly, whether individuals closely related to the Executive Head of the State can ethically be awarded government contracts, and secondly, if such awards are permissible, what norms should govern the process to ensure transparency and fairness.

Now, with the recent directive from the Supreme Court, the CAG has been tasked with a crucial investigative role. The examination and investigation by the CAG are expected to shed light on the alleged irregularities in the tendering process, the role of influential connections in contract awards, and the broader implications for accountability and transparency in government operations.

Case: Voluntary Arunachal Sena vs. State of Arunachal Pradesh,

Petition(s) for Special Leave to Appeal (C) No(s). 34696/2010.

Click to read/download order.