Mumbai elevated road and tunnel projects: Re-tender or we will stay, Supreme Court tells MMRDA on L&T plea against rejection of bids

Indian Express

4 days ago

The Supreme Court on Monday said it's difficult to believe that the technical bids of Larsen and Toubro (L&T) Ltd — which was selected for the execution of the Central Vista Project — for the Rs 6,000 crore (approx) Mumbai Elevated Road Project and Rs 8,000 crore (approx) Road Tunnel Project were rejected and asked Mumbai Metropolitan Region Development Authority (MMRDA) whether it was willing to re-tender, failing which, the court warned, it would stay the process.
'The very name of the bidder, it's difficult to believe, he has been chosen to construct the Central Vista by the Central government,' Chief Justice of India B R Gavai presiding over a two-judge bench said. 'Take instructions on whether you are willing to retender. Otherwise we will stay,' the CJI told Solicitor General Tushar Mehta, and Senior Advocate Mukul Rohatgi who appeared for MMRDA.
The bench, also comprising Justice A G Masih, was hearing appeals filed by L&T, challenging the two May 20 Bombay High Court orders upholding MMRDA's stand that the reasons for the rejection of the technical bids need not be communicated to L&T before the projects are awarded.
The principal ground of L&T's challenge is that it was technically disqualified from the process without any intimation or reasons.
It contended that the arbitrary and non-transparent manner of carrying out the tender process has resulted in declaration of the L1 bid for both projects to Megha Engineering & Infrastructure Ltd at a substantially higher project cost. The company claimed that compared to the L1 bidder, its price bid was approximately Rs 2,521 crore less in the Road Tunnel Project and Rs 609 crore less in the elevated road project.
L&T had initially challenged the MMRDA's decision to proceed with the opening of the price bids without the presence of L&T, and without communication of any disqualification to it, before the Bombay HC. The same was dismissed via the two orders on May 20, 2025, following which it approached the SC.
On Monday, Mehta submitted that the HC had said that all contentions are kept open and even after award of the contract, it can be stayed.
The CJI, however, said that will only be an excuse to invoke fait accompli.
When Senior Advocate A M Singhvi appearing for L&T said the L1 bidder's bids were about Rs 2,500 crore and Rs 600 crore more than L&T's, Rohatgi submitted that 'question of money doesn't arise if you are disqualified.'
The bench, however, did not seem to agree. CJI Gavai said 'question of money also arises if it's a public interest matter', adding, 'you better take instructions. The public money would be saved'.
The SG said 'there are good reasons' for the disqualification. Rohatgi added: 'We will show the reasons for disqualification.' He argued that the SC had in 2022 upheld similar clauses of the tender where reasons for disqualification may be intimated after the award of tender.
Singhvi's said the 2022 order pertained to foreign-funded projects, and was inapplicable to the facts of the present case.
Mehta submitted that said clauses aim to ensure that a tender process is not disrupted due to unnecessary challenges causing delays.
Mehta said: 'Dr Singhvi made a request, don't return my price bid. We kept his price bid with us without opening it in a sealed cover. He opened it. We do not know that there is an increase in the price he has quoted.'
Singhvi responded, 'I know my price.'
CJI Gavai said, 'We are in an era of transparency…if it's arbitrary, the person should have an opportunity to challenge.'
Rohatgi said he had no objection but L&T can wait till the financial bids are opened.
The CJI said, 'and make it a fait accompli. It would be said the project had already commenced.'
Singhvi added that the 'names of the other two left are more important than my name…Their names are very interesting.'
The court will hear the matter next on May 29.
The Elevated Road Project envisages a 9.80 km bridge passing along the Vasai Creek. It's part of an extension of the Mumbai Coastal Road project and a part of the MMRDA's larger road expansion project involving construction of approximately a 15-km stretch of road from Gaimukh in Thane to Bhayander.
The Road Tunnel Project is for Design & Construction of underground road tunnel from Gaimukh to Fountain Hotel Junction on Thane Ghodbunder Road. It envisages 5-km-long twin tunnels of finished diameter of 14.6m estimated at approximately Rs 8,000 crore, which is an extension of the Mumbai Coastal Road project and a part of the MMRDA's larger road expansion project involving construction of approximately 15 km of road from Gaimukh in Thane to Bhayander.
Ananthakrishnan G. is a Senior Assistant Editor with The Indian Express. He has been in the field for over 23 years, kicking off his journalism career as a freelancer in the late nineties with bylines in The Hindu. A graduate in law, he practised in the District judiciary in Kerala for about two years before switching to journalism. His first permanent assignment was with The Press Trust of India in Delhi where he was assigned to cover the lower courts and various commissions of inquiry.
He reported from the Delhi High Court and the Supreme Court of India during his first stint with The Indian Express in 2005-2006. Currently, in his second stint with The Indian Express, he reports from the Supreme Court and writes on topics related to law and the administration of justice. Legal reporting is his forte though he has extensive experience in political and community reporting too, having spent a decade as Kerala state correspondent, The Times of India and The Telegraph. He is a stickler for facts and has several impactful stories to his credit. ... Read More