Relief for L&T as MMRDA cancels Rs.14,000 crore tender for Mumbai elevated roads and tunnel projects after Supreme Court’s sharp criticism. The Court had earlier questioned the manner in which L&T was disqualified from bidding.
The Mumbai Metropolitan Region Development Authority (MMRDA) informed the Supreme Court on Friday that it has opted to cancel the previous tender process for the construction of the Rs.8,000 crore Thane-Ghodbunder to Bhayandar road tunnel and the Rs.6,000 crore elevated road projects.
This statement was made during a hearing regarding a plea by Larsen & Toubro (L&T), which claimed it was unjustly disqualified from the tender process at the financial bid stage without being notified about the results of its technical bid.
The Supreme Court had previously raised concerns about L&T’s exclusion, noting that the company played a vital role in the rescue of workers in Uttarakhand and has contributed to significant projects such as the Central Vista project.
A bench consisting of Chief Justice of India (CJI) BR Gavai and Justice AG Masih emphasized that transparency is essential in these tender processes.
Today, a bench comprising of CJI Gavai, Justice Masih, and newly appointed Justice Atul Chandurkar was informed that the MMRDA has decided to cancel its earlier tender.
Representing the MMRDA, Senior Advocate Mukul Rohatgi stated,
“We are scrapping the tender.”
CJI Gavai commended the MMRDA and its counsel for this decision.
The CJI remarked,
“Yes, we are in the era of transparency. We should appreciate Solicitor General (Tushar) Mehta and Mr. Rohatgi,”
The Court then moved to close L&T’s plea.
The Court ruled,
“It is fairly stated that the entire tender process is scrapped in larger public interest. Thus the plea is disposed off as infructuous,”
L&T had raised concerns about procedural irregularities and alleged unfair treatment during the bidding for the Thane-Ghodbunder to Bhayandar infrastructure project, which is crucial for Mumbai’s urban transport expansion.
During the previous day’s hearing, Senior Advocate Abhishek Manu Singhvi, representing L&T, pointed out that the company chosen for the project lacked the necessary credentials and emphasized the opaqueness of the selection process.
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On the same day, Senior Advocate Rohatgi argued that L&T’s disqualification was not based on “fanciful grounds” and noted that some disclosures were restricted as per the tender terms.
Solicitor General Tushar Mehta, also representing the MMRDA, had requested for the matter to be taken up today, citing discussions with the executive.
Today, the issue was resolved as the MMRDA confirmed the scrapping of its earlier tender process.
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