L&T has accused MMRDA of unfair practices in a Rs 6,000 crore infrastructure tender. The Supreme Court will hear the case on May 29 after Bombay HC dismissed L&T’s petitions.
New Delhi: Today, On May 28, The Supreme Court of India has decided to hear on May 29 a case filed by Larsen & Toubro (L&T), where the company has accused the Mumbai Metropolitan Region Development Authority (MMRDA) of not following proper rules during the tender process for a Rs 6,000 crore infrastructure project.
This project includes a tunnel and elevated road from Thane-Ghodbunder to Bhayandar.
Earlier, L&T had gone to the Bombay High Court with two petitions about the matter, but the High Court dismissed both. After this, L&T approached the Supreme Court to challenge the decision and seek justice.
The matter came up briefly on May 26 before a Supreme Court Bench led by Chief Justice of India (CJI) BR Gavai and Justice AG Masih.
During the hearing, the Court observed that L&T was also the company chosen earlier to construct important buildings under the Central Vista development project in Delhi.
The Bench showed concern and questioned if the tender process in this new case was fair or not.
CJI Gavai strongly said,
“This is thousands of crores of public money. Please take instructions ..else we will stay this (High Court) order. Question of money arises if it’s a public interest matter. The very name of the bidder … he was the one chosen to construct Central Vista, and here this!”
The Bench made it clear that if a proper explanation is not given about the fairness of the tender process, the Supreme Court might put a stay on the Bombay High Court’s order.
The Court also stressed the importance of honesty and fairness in cases that involve public funds and tenders.
L&T had taken part in the bidding process last year after the MMRDA floated tenders in July. L&T, along with other companies, submitted its technical bids.
These bids were opened in January this year. However, L&T said that after that, MMRDA moved ahead with the next step and opened the financial bids, without telling L&T whether its technical bid was accepted or rejected.
L&T also said they were not even called to be present when the financial bids were opened.
L&T felt that this was not fair and challenged it in the Bombay High Court. But when the High Court dismissed the petitions, L&T went to the Supreme Court.
While agreeing to hear L&T’s appeal, the Supreme Court again stressed the need for transparency and fairness.
CJI Gavai said,
“Now, we are in the era of transparency. Anything arbitrary… the person must have an option to challenge it … List on Thursday.”
In its appeal, L&T has stated that it was not given any chance to present its side or argue against the rejection of its bid.
It also said that they were never officially informed that their bid had been disqualified.
L&T is being represented in the Supreme Court by Senior Advocate Dr. Abhishek Manu Singhvi, and the appeal was filed through the law firm Cyril Amarchand Mangaldas.
On the other side, the MMRDA is being represented by Solicitor General of India Tushar Mehta and Senior Advocate Mukul Rohatgi.
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