Relief for L&T, SC okays scrapping of key tender

Hindustan Times

2 days ago

In relief to engineering and construction company Larsen & Toubro, which was challenging its disqualification in the tender process for the Thane-Ghodbunder to Bhayandar tunnel and elevated road projects, the Mumbai Metropolitan Region Development Authority (MMRDA) told the Supreme Court that it has decided to scrap the entire tender process.
Senior advocate Mukul Rohatgi told a bench headed by chief justice of India (CJI) Bhushan R Gavai that the process has been scrapped and the authority will await for further directions from the state government.
Recording Rohatgi's submission, the bench in its order said, 'Senior counsel appearing on behalf of the respondent (MMRDA), fairly submit that the state has decided to scrap the entire tender process in the larger public interest and will take such steps, as are advised.'
The bench, also comprising justices AG Masih and Atul S Chandurkar, said, 'In that view of the matter, the present special leave petitions have been rendered infructuous and are disposed of as such.'
L&T had approached the top court against an order of the Bombay high court passed on May 20, which allowed MMRDA to open the other financial bids.L&T said it came to know of its disqualification only in early May. The company submitted its techniocal bid in December.
The top court earlier expressed surprise at how the company which constructed the Central Vista project was disqualified.
On Friday, the court appreciated the MMRDA's stand and said, 'We are in an era of transparency,' pointing out that it was concerned about the 'larger public interest' as public money is involved.
In July, MMRDA issued a notice inviting tenders for its public infrastructure projects involving the Road Tunnel project (Gaumukh to Fountain Hotel junction on Thane Ghodbunder Road). This projects envisaged 5-kilometre-long twin tunnels of finished diameter 14.6 metres estimated at ₹8,000 crore. The second project involving construction of a 9.8 kilometre long Elevated Road envisaged a bridge passing along the Vasai Creek.
Both projects were meant to be an extension of the Mumbai Coastal Road project and a part of MMRDA's larger road expansion project involving construction of approximately 15 kilometre of road from Gaumukh (in Thane) to Bhayander.
L&T submitted its technical bid in December 2024 and this was opened on January 1. In May, the company learnt that MMRDA sent letters to qualified technical bidders asking them to appear for the opening of the financial bids on May 13. L&T had approached the Bombay high court, which initially stayed the opening of the financial bids but then ruled against L&T in its May 20 order, prompting the appeal.