He married Smt. Aruna Khanduri and has one son and one daughter. He was educated at Allahabad University, College of Military Engineering, Pune , Institute of Engineers, New Delhi and Institute of Defence Management, Secunderabad. He was a civil engineer in the Army and worked for over three decades(1954-1990). For his services he was awarded Ati Vishisht Seva Medal (AVSM).
Khanduri was first elected to Lok Sabha from Garhwal in Uttarakhand 1991 and in subsequent elections. He was the Minister of State (with independent charge) of the Road, Transport and Highways Ministry from 2000 to 2003 in the central government headed by Shri Atal Bihari Vajpayee. He was elevated to cabinet rank in 2003, and held the post until the end of the tenure of the NDA government in May 2004. He is a senior leader of Bhartiya Janata Party, having served on various parliamentary committees. As a minister, he implemented BJP’s prestigious National Highways Development project with efficiency and speed. As the Minister of Road Transport and Highways, Khanduri executed the high-status National Highways Development Plan of the NDA with competence and swiftness. In fact, Khanduri gave shape to the Golden Quadrilateral Project connecting the major Indian cities and metropolises through road. The existence of large network of national highways bears the testimony to Khanduri’s execution of the Golden Quadrilateral project.
In February 2007, he led the BJP to victory in assembly elections in Uttarakhand and was subsequently chosen to be the new Chief Minister of the state. Among Khanduri’s first accomplishments as Chief Minister has been to cut expenses by reducing his own security and as well as of politicians and administrative officials, cutting back on their allowance for foreign trips and has restricted the use of the Chief Minister’s discretionary fund to the projects approved by the district magistrates. Following his election, he toured the entire state to gain the first hand information about the conditions of the people.
Khandhuri lost the election from kotdwar on 6th Mar 2012 creating wide spread news. His loss has been attributed to machinations and internal politics.