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Indian Express
a day ago
- Business
- Indian Express
After SC nudge, MMRDA scraps tender process for Thane-Bhayandar mega infra projects worth Rs 14,000 crore
The Mumbai Metropolitan Region Development Authority (MMRDA) has informed the Supreme Court that it has scrapped the two tenders issued for the Thane-Ghodbunder to Bhayandar tunnel and elevated road projects worth over Rs 14,000 crore in 'public interest'. 'We have decided to scrap the two tenders. The government will decide what they want to do,' Senior Advocate Mukul Rohatgi, appearing for MMRDA, told a bench of Chief Justice of India B R Gavai and Justices A G Masih and A S Chandurkar. Taking MMRDA's statement on record, the Supreme Court bench disposed of as 'infructuous' the pleas by Larsen & Toubro (L&T) Limited that challenged the Bombay High Court order of May 20. The high court's vacation bench had refused relief to L&T in its pleas challenging the opening of financial bids for the two projects. 'Solicitor General Tushar Mehta and Senior Advocate Mukul Rohatgi appearing for MMRDA fairly state that the state (MMRDA) has decided to scrap the entire tender process in the larger pubic interest and take such steps as are advised. In that view of the matter, petition is rendered infructuous and disposed of as infructuous,' the bench said in its order. L&T had claimed that it had not received any intimation about the status of the bids, while other bidders had received the same. It had argued that MMRDA had initiated the opening of the financial bids by excluding L&T from the process. Senior advocates Kapil Sibal, Abhishek Singhvi, Ranjit Kumar, Neeraj Kishan Kaul, and advocates Raunak Dhillon, Madhavi Khanna, and Nihaad Dewan appeared for L&T. The two projects are proposed to link Thane and Mira-Bhayandar. One of the projects consists of a 5-km twin tunnel of 14.6-metre diameter from Gaimukh to Fountain Hotel Junction at Shilphata, worth Rs 8,000 crore. The other project, an elevated creek road bridge of 9.8 km, estimated to cost nearly Rs 6,000 crore, will connect Bhayandar with Ghodbunder Road in Thane. The two projects are part of an extension of the Mumbai Coastal Road project and the elevated bridge is likely to be the second largest after the Mumbai Trans Harbour Link (MTHL) bridge, also called Atal Setu. MMRDA's decision to scrap the present tender process came after the apex court on May 26 and 29 asked the authority whether it was willing to carry out re-tendering process for the two major projects and had warned that failure to do so may lead to the court staying the present tenders. The Supreme Court had said that it was difficult to comprehend that the technical bids of L&T, the company which was selected to execute the Central Vista Project in Delhi, had been rejected for the projects linking Thane and Bhayandar. L&T had told the top court that MMRDA had arbitrarily declared Hyderabad-based Megha Engineering and Infrastructure Ltd (MEIL) as L1 (lowest) bidder for both the projects, despite its bid being at a substantially higher cost compared to that of L&T. The firm had argued that its price bid was nearly Rs 2,521 crore less than that of MEIL in the tunnel project, and Rs 609 crore less for the elevated road project. However, MMRDA, argued that there were 'substantial reasons' for rejecting the bid and that it was not on 'flimsy' or 'fanciful' grounds. On Friday, as Rohatgi informed the apex court that MMRDA was scrapping the present tenders, CJI Gavai said, 'Otherwise, if we go into the merits, we will have to consider the validity of that clause and everything.' Rohatgi said, 'I conveyed to the government. I had a discussion with the government.' The CJI said, 'We are basically concerned with the larger public interest. The difference is Rs 3,200 crore… We live in an era of transparency.' Though the petitioners also urged the bench to set aside the high court judgment, the CJI said it is not necessary. CJI Gavai told the petitioner's counsel, 'You should appreciate the fairness of Rohatgi and the Solicitor. At least at times.'
Indian Express
5 days ago
- Business
- Indian Express
Mumbai elevated road and tunnel projects: Re-tender or we will stay, Supreme Court tells MMRDA on L&T plea against rejection of bids
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
