Post legal battle with L&T, MMRDA says it will retender 2 infra projects in ‘public interest'

The Print

a day ago

Following the MMRDA's decision, the Supreme Court disposed off a petition filed by Larsen & Toubro appealing against a Bombay High Court order dated 20 May. L&T had filed two petitions in the high court on two separate occasions, alleging irregularities in the opening of financial bids. The high court had denied relief to the company, declining to stay the opening of bids.
The MMRDA told the Supreme Court Friday that it will scrap the two tenders. In a statement later in the day, the development authority said it will reinitiate the tendering process for the Ghodbunder (Thane)-Bhayander road tunnel and bridge project. It said the decision has been taken 'purely in public interest'.
Mumbai: Following a legal battle with construction firm Larsen & Toubro over alleged tender irregularities in two ambitious projects, the Mumbai Metropolitan Region Development Authority (MMRDA) has decided to scrap the two tenders, and reinitiate the process.
In a statement, the MMRDA said, 'Although the authority's (MMRDA's) legal position was upheld at every level, the decision has been taken purely in public interest and to ensure judicious use of taxpayer money.'
The MMRDA's decision to scrap the tender comes four days after Chief Justice of India B R Gavai asked the development authority if it was willing to retender the projects, failing which the apex court might have to freeze the whole tender process.
The two projects, said to be roughly worth Rs 14,000 crore, involve linking Thane and Mira Bhayander. One of the two projects involves building a 5-km twin tunnel from Gaimukh to the Fountain Hotel junction at Shilphata at about Rs 8,000 crore, while the other is a 9.8-km elevated creek bridge to connect Bhayander with Ghodbunder Road in Thane. This is estimated to cost about Rs 6,000 crore.
L&T did not respond to ThePrint's email seeking a comment. The report will be updated if and when a response is received.
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The battle over bids
In both the projects, the MMRDA had declared Megha Engineering & Infrastructure Limited to be the lowest bidder. The L&T's main grouse was that it was dropped from the tender process after the submission of technical bids without being given any reason or any intimation.
The company also said that its bids for the two projects were cumulatively about Rs 3,000 crore lower than Megha Engineering's bid.
As per the MMRDA, the authority disqualified L&T after the technical bidding stage as the company failed to comply with 'an essential eligibility clause.'
The clause required L&T to submit an undertaking confirming that no bridge or barrage constructed by the company had collapsed within the 'last two years of completion'.
'This rendered them ineligible as per the tender norms. Their financial bid was therefore never opened,' the MMRDA said in its statement.
In the retendering of bids, the development authority has said that it will try to reduce the overall project cost for the two works by Rs 3,000 crore.
(Edited by Ajeet Tiwari)
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