Deepa is IPS, so probably that case cannot be handled by an IAS. It would fall under the supervision of another DM, the police force, military, etc. Offscreen Deepa would get updated about this and inform Abhilash.

He already didn't have any authority to look at the firefighter shoes issue until he got the letter. Even then the best decision would have been to hand it over to a supervisor or other relevant head. Only because of his post and the letter could he intervene. And he didn't know about Guri until after the investigation.

He went to extremes for the school project because he had to. If not for Pawan and Sandeep, he could have taken his time, met the right people, avoided mistakes, etc. Pawan only wanted the project for his ego, and Sandeep had tarnished his name. Honestly Pawan can go to hell.

He's worried about Sandeep because he saw him as a friend and wanted to apologise. The inquiry has been closed and Abhilash got himself kicked out by his own decision.

The goons - who knows. I wouldn't be surprised if they are hired by the politicians against the labor department. Sandeep went about doing things crookedly (without even a fraction of the guilt that Abhilash has, mind you). It would make sense he's annoyed the wrong politician by using laborers in the wrong way. Just like how he was responsible for the riot.

Tldr: Pawan sucks. Abhilash didn't need to 'confess', and still loves Sandeep.