INDIA, Dec. 5 -- The Supreme Court has flagged serious concerns over claims that public contracts in Arunachal Pradesh were repeatedly issued to companies owned by Chief Minister Pema Khandu's relatives.

Taking up a petition alleging large-scale favouritism, a bench of Justices Vikram Nath and Sandeep Mehta noted that the accusations involve "high functionaries" and point to a "considerable number" of work orders routed to firms linked to the Chief Minister's family.

The bench remarked that it appeared to be a "remarkable coincidence" that tenders across several districts consistently went to companies belonging to Khandu's relatives.

Since the state government did not challenge the ownership details of these firms, the judges said the...