
No stay on opening of financial bids in Thane-Bhayandar tunnel and elevated road project: Bombay HC, denies relief to L&T
Bombay HC
MUMBAI: The Bombay High Court vacation bench on Tuesday granted no relief to construction major Larsen & Toubro, one of the bidders in the Thane-Bhayandar Tunnel and elevated road project.
The division bench of Justices Kamal Khata and Arif Doctor did not stay the opening of the financial bids that were scheduled for May 13, originally. However, the HC stated that after opening the financial bids and communicating the decision to the winning bidder, the financial bids are to be preserved in a sealed cover for two weeks to enable L&T to appeal to the Supreme Court.
The tunnel, 5 km, and the elevated road, 9.8 km, together make it the second-longest road project after the almost 22 km long Atal Setu and is being undertaken by the Mumbai Metropolitan Region Development Authority (
MMRDA
).
The project cost is estimated at over Rs 14,000 crore.
Earlier, as an urgent interim order, the HC initially stayed the opening of the financial bids—the final stage of the bidding process—for a day and then, during the hearing, asked the Mumbai Metropolitan Region Development Authority (MMRDA), which is executing the two projects, not to open the bids until it passes orders. The reasoned judgment copy will be made available later during the day.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Ative sua licença do antivírus agora
McAfee.com
Clique aqui
Undo
However, when L&T's senior counsel Janak Dwarkadas, in one of the two petitions—separate petitions were filed for the two bids for the tunnel and elevated road—sought to request the presence of the company's representatives at the opening of the financial bids, the HC was not inclined and orally said it was held in his petition that the bidder came to court after suppressing material.
Last Thursday, the HC closed for orders a petition filed by construction major Larsen & Toubro (L&T) to challenge the opening of financial bids without its presence as a bidder for two projects, one a tunnel and the other an elevated road from Thane-Ghodbunder to Bhayander.
Earlier, L&T played a lead role in the construction of the Mumbai Trans Harbour Link (Atal Setu), also an MMRDA project.
The High Court vacation bench of Justices Kamal Khata and Arif Doctor sought written submissions from both sides. On Wednesday, it requested MMRDA not to open the bids until Thursday when it concluded the hearing and extended the stay against the opening of the financial bid—which is the last stage of the tendering process.
Senior counsel
Mukul Rohatgi
, logging in via video conferencing from Delhi and appearing for MMRDA, as did Solicitor General
Tushar Mehta
, said not just L&T, there were two other bidders in one of the projects and one more in the second project, who were found non-responsive when technical bids were opened. Under the terms of the tendering process, they will be intimated once the bidder is finalised after the opening of financial bids. There were around five bidders overall, the court was informed.
Rohatgi argued that the petitioner suppressed bid conditions and clauses which clearly enable MMRDA not to disclose its decision on the technical bid round to the bidders during the process but entail intimation after the winning bid is selected.
For L&T, which filed two separate petitions for the tunnel and elevated road projects, senior counsel AM
Singhvi
and
SU Kamdar
appeared on Thursday, arguing how the non-intimation after the opening of technical bids—the second stage of the bidding process—flouted even State guidelines and various fundamental rights, including equality, the right to trade, and the right to life, in tenders for public projects, entailing public funds.
Rohatgi and
Mehta
cited the Mumbai-Ahmedabad high-speed rail (bullet train) project judgment of the Supreme Court, termed the '
Montecarlo
' case, after the bidder whose technical bid was held non-responsive went to court and was unsuccessful before the apex court. In large public projects, the bid documents are made to ensure there is no litigation during the tendering process, as delay would not augur well, Mehta argued.
L&T counsel argued that the bullet train is foreign-funded and the SC carved a distinction, but MMRDA cannot be allowed to turn the settled principles of transparency and fairness long held by the courts as the foundation of the tendering process for public projects on its head.
MMRDA said the tender terms were the same in the bullet train project, hence L&T's petition ought to be dismissed. The SC in the Montecarlo matter held, 'Even while entertaining the writ petition and/or granting the stay which ultimately may delay the execution of the Mega projects, it must be remembered that it may seriously impede the execution of the projects of public importance and disable the State or its instrumentalities from discharging the constitutional and legal obligation towards the citizens.
Therefore, the High Courts should be extremely careful and circumspect in the exercise of its discretion while entertaining such petitions.'
The Elevated Road Project is an extension to the Mumbai Coastal Road Project: envisages a 9.80 km bridge passing along the Vasai Creek. It is estimated at approximately ₹6000 crore,
The tunnel is 5 km long from Gaimukh to Fountain Hotel Junction on Thane Ghodbunder Road; estimated at Rs 8000 crore with the largest diameter of 14.6 m.
L&T invoked PWD guidelines casting obligations on communicating the list of qualified/disqualified bidders after the technical round, which the MMRDA argued was not mandatory as held earlier in a matter by the HC., MMRDA argued that the guidelines were not mandatory as held earlier in another matter by the HC

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
35 minutes ago
- Time of India
8th Pay Commission salary hike may miss January 2026 deadline: Will it impact fitment factor calculation?
Why the 8th Pay Commission might be delayed beyond January 2026? Live Events Fitment factor Dearness Allowance (DA) to be merged with basic pay Pensioners may see revised benefits What government employees should prepare for For nearly 35 lakh central government employees and over 67 lakh pensioners, the 8th Pay Commission has become a source of speculation. With growing chatter around possible pay hikes and revised pension benefits, expectations are soaring. Despite the excitement, there's still no official word from the government on when the 8th Pay Commission will be constituted, leaving many in employee unions have begun voicing concern over the delay, urging the government to form the Commission well in advance to ensure timely implementation and reduce uncertainty for both employees and 7th Pay Commission, which came into effect in January 2016, was announced nearly two years prior, in February 2014. That timeline gave enough room for report submission, cabinet approval, and a timely rollout. However, as of mid-2025, the 8th Pay Commission is yet to be formed, and the crucial Terms of Reference (ToR), which define the scope and goals of the commission, haven't been finalised officials have confirmed that internal discussions are underway, but given the pace of bureaucratic processes, the rollout may stretch well beyond the expected January 1, 2026 timeline. Even if the Commission is announced by the end of this year, historical patterns indicate a gap of 18-24 months before the recommendations are ready for implementation. At this pace, the hike might only materialise by late 2026 or early to the delay are fiscal constraints, with the government balancing welfare spending, election promises, and fiscal deficit targets. A generous hike could significantly strain the exchequer, prompting policymakers to tread carefully.A major part of the salary revision hinges on the fitment factor, Fitment factor is the number used to recalculate an employee's basic salary. In the 7th Pay Commission, this was set at 2.57, raising the minimum pay from Rs 7,000 to Rs 18,000. Going by the views expressed by various experts 8th Pay Commission could recommend a fitment factor between 2.5 and 2.86. "Considering the inflation factor, there are indications that the fitment factor may stay between 2.5- 2.8 times, which will give a significant boost to employee salaries between Rs 40,000 and Rs 45,000," says Krishnendu Chatterjee, Vice President at the top-end 2.86 figure is accepted, the minimum basic salary could climb to over Rs 51,000. However, due to its fiscal implications, such a steep hike may be challenging. A 2.6x to 2.7x hike appears to be more likely, providing a significant increase while keeping the government's finances in fitment factor for the 7th Pay Commission was 2.57 and the minimum basic salary was hiked to Rs 18,000 from Rs 7,000. For the 6th Pay Commission, the fitment factor was 1.86 and the minimum basic salary was raised from Rs 2,750 to Rs 7, likely shift is the merger of the Dearness Allowance with the basic salary. Currently pegged at around 55% effective from January 2025, DA helps offset the impact of inflation and is revised twice in a year. Before the effective date of 8th Pay Commission early next year, there is one more DA hike is due to be announced in coming months which will be effective from July 2025. When a new Pay Commission is implemented, DA accumulated up to that point is typically merged into the revised basic this increases the overall salary package, it also means future DA hikes start from zero. Employees will see a rise in gross salary and related allowances, such as HRA and transport, but may also experience low DA in the near term. However, a higher base salary will mean that each DA hike will mean a higher increase in implementation of the 8th Pay Commission is not only being eagerly awaited by salaried employees. Nearly 67 lakh government pensioners are also impacted by any revision in the pay scale. Previous Pay Commissions have included changes in pension calculation formulas and benefits, and similar adjustments are expected this time as merger of Dearness Relief (DR) into basic pension also affects pensioners, as their payouts are tied to similar structures. Any revision in the base figures could significantly alter monthly pension employees' associations have echoed the concerns of serving staff, pushing for greater clarity from the government on how pension recalculations will be carried out in the new the uncertainty, a few things seem inevitable. A revised pay structure is coming, but it may take longer than expected. The eventual hike could push minimum salaries up to Rs 40,000 - Rs 45,000, with pension adjustments following suit. DA will reset, but higher allowances may offset the initial flattening in salary government staff would do well to temper expectations, at least in terms of timing. The gains could be significant, but the road to them may be more drawn out than previous 8th Pay Commission is aimed to deliver significant financial changes for government employees and pensioners. Yet, the pace of bureaucracy, pending approvals, and fiscal balancing may delay the implementation beyond the earlier-set target of January 2026.


India.com
35 minutes ago
- India.com
This company's shares gain amid volatility in market
शेयर बाजार में हाहाकार, अरबों डॉलर हुए स्वाहा Mercury EV-Tech Ltd., a Gujarat-based electric vehicle solutions provider, launched a new EV showroom in Bhavnagar. This resulted in a 2.2% share price increase to Rs 62.75 on Tuesday, from the previous closing price of Rs 61.40. However, profit-taking and market volatility led to a significant reduction in gains. At 1:21 pm, shares were trading up 0.5 percent at Rs 61.70 on the BSE. The 52-week high and low are Rs 139.20 and Rs 51.24 per share, respectively. The company boasts a market capitalization exceeding Rs 1,100 crore, with strong Q4FY25 and FY25 financial results. Quarterly net sales surged 451% to Rs 30.68 crore, and net profit increased by 47% to Rs 1.34 crore compared to Q4FY24. Annually, net sales grew 307% to Rs 89.64 crore in FY25, while net profit rose 286% to Rs 7.70 crore compared to FY24. Since reaching its 52-week low of Rs 51.24 per share, the stock has appreciated by 22.5%. FY25 saw new Foreign Institutional Investor (FII) participation, with the acquisition of 36,43,605 shares, representing a 1.92% increase over FY24. The stock has delivered multibagger returns of 6,550% over three years and a remarkable 17,065% over five years.


India Gazette
35 minutes ago
- India Gazette
RBI to discontinue daily Variable Rate Repo from June 11, 2025 because of liquidity surplus in banking system
New Delhi [India] June 10 (ANI): The Reserve Bank of India (RBI) announced on Tuesday that it will discontinue daily Variable Rate Repo (VRR) auctions starting June 11, 2025. The discontinuation of the VRR is due to a liquidity surplus in the banking system reaching approximately Rs 3 lakh crore. RBI said, 'Further, on a review of current and evolving liquidity conditions, it has been decided that the daily VRR auctions, as announced in the above press release, will be discontinued with effect from June 11, 2025, Wednesday'. This decision follows muted demand for daily VRR auctions, with banks bidding only Rs 3,711 crore on June 9, 2025 and Rs 3,853 crore on June 10 against a notified VRR of Rs 25,000 crore. The RBI introduced daily VRR auctions on January 16, 2025, to address liquidity tightness caused by tax outflows and forex interventions. With liquidity now comfortable, the central bank aims to stabilise overnight money market rates, which are trending lower due to the surplus. Market participants expect 14-day VRR auctions to continue to manage short-term liquidity. Additionally, the RBI's recent 100 basis point cut in the Cash Reserve Ratio (CRR) to 3.0 per cent is expected to release Rs 2.5 lakh crore, further supporting liquidity. Variable Rate Repo is a tool used by the RBI to manage short-term liquidity in the banking system. Under this, banks can borrow money from the RBI for a short period by offering government securities as collateral. The interest rate for borrowing is decided through an auction, where banks bid for the amount they want at different rates. The rate is 'variable' because it is determined by the auction rather than being fixed. The RBI used the VRR to inject liquidity into the system during tight liquidity conditions. Now, with money market rates trending lower and banks flush with funds, the central bank is adjusting its operations accordingly. This step aligns with the RBI's neutral policy stance and its strategy to adjust liquidity tools in line with market conditions. (ANI)