Supreme Court Probes Alleged Cronyism in Arunachal Pradesh Contracts Worth Thousands of Crores

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The Supreme Court has raised concerns over a 'remarkable coincidence' of huge government contracts in Arunachal Pradesh's Tawang district being awarded to firms linked to Chief Minister Pema Khandu and his family members. The court has directed the state to provide data on similar contracts across the state. In a public interest litigation, the court was informed that over 154 contracts worth thousands of crores were awarded to firms linked to the Chief Minister and his family members in the past 10 years. The firms included those owned by the Chief Minister's wife, brother, and nephew. The court expressed skepticism over the state's claim that the contracts were awarded through open tenders, saying that it may have been a case of cartelization. The bench has asked the state to file a detailed affidavit providing information on contracts awarded to the Chief Minister's family members across all districts in the state. The petitioners have alleged that the state's practice of awarding contracts through 'work orders' without technical know-how violates the General Financial Rules and other procurement manuals. The state enacted a law in 2015 permitting the practice, which the petitioners argue has led to a lack of transparency and accountability in the award of contracts. The court has granted two months for the state to file its response and has posted the matter for February next year. The probe has sparked concerns over cronyism and corruption in the award of government contracts in Arunachal Pradesh.