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In a significant order, the Supreme Court on Tuesday agreed to examine a PIL alleging Arunachal Chief Minister Pema Khandu awarded contracts to his family members and asked the state government for details of the beneficiaries and inform if due process was followed.
A bench comprising Chief Justice Sanjiv Khanna and Justices Sanjay Kumar and K V Viswanathan also sought responses from union ministries of home affairs, finance and the Comptroller and Auditor General of India on the issue within five weeks.
The bench was hearing a PIL filed by NGOs Save Mon Region Federation and Voluntary Arunachal Senaa alleging all government contracts in the state were being awarded to the CM's close family members.
The bench specifically asked the state government to provide details on whether any government contract was awarded to Chief Minister Pema Khandu, who is party to the PIL.
Pema's father Dorjee Khandu's second wife Rinchin Drema and his nephew Tsering Tashi have been made parties to the case.
Dorjee served as the chief minister of Arunachal Pradesh from 2007 until his death in a helicopter crash in April 2011.
The bench asked the state government to also give details, if any, relating to the grant of government contracts to other family members of the present chief minister.
"We want the Ministry of Finance and Ministry of Home Affairs reports. We must have a clear cut answer as to who are the parties to whom the contracts were awarded and what was the process (followed). Whether tenders were not called for or not ? It must be stated. Both the ministries must come out clear," the CJI said during the hearing.
"The court went on, We need a detailed affidavit from the state of Arunachal furnishing details of parties to whom the contracts were awarded and with reference to the contracts mentioned in the plea..."
The matter would be heard in the week following July 21.
The bench said it also wanted a detailed final status report from the CAG keeping in mind the code of conduct for lawmakers and their role in awarding government contracts.
Advocate Prashant Bhushan, appearing for the petitioner NGOs, said the state of affairs was shocking as the state was being run like a private limited company.
All contracts have been awarded to his (CM's) wife's company, his cousins' company, etc., he alleged.
The state government opposed the plea saying it was an abuse of process of the law.
The CAG, in its report, said that Arunachal Paresh was slightly different and is doing everything it can do This is a politically motivated petition, the government counsel said.
Hundreds of crores have been looted, Bhushan alleged.
The CJI sought "clear cut" answer to the questions on the parties to whom the contracts were awarded and secondly if the process was followed.
Bhushan previously said the top court had issued notices last year to the Centre, the state government, CBI, Khandu and others on the PIL and no substantial hearing took place on the last three dates.
The plea claimed Rinchin Drema's firm, Brand Eagles, was awarded a large number of government contracts despite there being a clear conflict of interest.
The PIL claimed when there was evidence of government contracts being awarded only to the firms of family members of the chief minister and his close associates, it was reasonable to draw an inference that such favour for government contract works of vast magnitude could not have been possible without direct knowledge, consent and active support of the minister concerned.
The petition said the restoration works for flood damage were allotted by the state government's Department of Relief and Rehabilitation.
"The minister of this department was Dorjee Khandu, also former CM, till 2011 and then the charge was taken up by his son Pema Khandu, now present Chief Minister. It is a serious cause of concern in view of so many work orders executed by a few selective firms belonging to the minister himself and his family members. This goes against the principles of good governance and transparent administration....," the plea said.