The case of Save Mon Region Federation & Anr. v. The State of Arunachal Pradesh & Ors. (2026 INSC 320) is a Public Interest Litigation (PIL) concerning allegations of systemic corruption and nepotism in the award of public works contracts in Arunachal Pradesh,.
Factual Background and Allegations
- The Petition: A civil society organization and a resident of the Mon region filed this petition under Article 32 of the Constitution, alleging that the State’s public procurement process was marked by favoritism and arbitrariness.
- The Accused: The petitioners alleged that public works were preferentially awarded to firms and individuals closely connected to high-ranking officials, including the current Chief Minister (Respondent No. 4) and his political associates, [4.1].
- Evidence of Irregularity: The petitioners relied on a report by the Comptroller and Auditor General (CAG) of India, which documented repeated instances of contracts being awarded without open and competitive tenders,,. The report also highlighted significant gaps in official documentation, such as missing vouchers, comparative bid statements, and file notings for projects of substantial value,,.
The State’s Defense
The State of Arunachal Pradesh sought to justify its procurement practices through several arguments:
- Geographical Context: It argued that the “work order system” (awarding work without tender) was necessitated by the unique geographical and socio-economic conditions of the state,.
- Minimal Impact: The State claimed that the percentage of total works awarded to the respondents or their associates was “minuscule” and did not reflect a pattern of favoritism,,.
- Legislative Scrutiny: It contended that CAG reports fall within the domain of the State Legislature and the Governor, suggesting the Court should not intervene in such administrative matters.
Supreme Court’s Findings
The Supreme Court rejected the State’s arguments and emphasized the constitutional obligations of the government:
- Trustee of Resources: The Court held that the State does not own public resources as a private proprietor but acts as a trustee for the people, requiring decisions to be transparent, fair, and free from undisclosed conflicts of interest,.
- Red Flags in Procurement: A departure from competitive bidding must be supported by rational, recorded reasons,. The Court found that the non-production of core records and the repeated use of non-tender methods for high-value projects were serious “red flags” that travel beyond routine contractual grievances,,.
- Rejection of the “Percentage Argument”: The Court ruled that even a single instance of an award tainted by a conflict of interest constitutes an affront to Article 14 of the Constitution; a low percentage of such awards cannot be used as a “licence” for nepotism,,.
- Need for Independent Investigation: Given that the allegations implicate the highest levels of the state executive, the Court found that an ordinary state-led investigation would lack public confidence and institutional independence , .
Directions of the Court
The Supreme Court disposed of the petition with the following directions:
- CBI Preliminary Enquiry: The Central Bureau of Investigation (CBI) is directed to register a preliminary enquiry within two weeks into the award and execution of public works contracts and work orders from January 1, 2015, to December 31, 2025,.
- Scope of Inquiry: The CBI must examine the procurement process, the reasons for dispensing with tenders, the flow of funds, and the identity of beneficial owners of the contractor entities,.
- State Cooperation: The State Government and all concerned departments must cooperate fully, providing access to all relevant records and electronic data within four weeks.
- Status Report: The CBI is required to file a status report before the Supreme Court within sixteen weeks.
The Court clarified that these directions are intended to decide whether a full criminal investigation is warranted and do not constitute final findings on the merits of the allegations
2026 INSC 320
Save Mon Region Federation & Anr. V. State of Arunachal Pradesh & Ors. (D.O.J. 06.04.2026)



