Latest news with #ElevatedRoadProject
Indian Express
2 days ago
- Business
- Indian Express
‘Substantial grounds' for rejecting L&T bid for Mumbai elevated road and tunnel projects, MMRDA tells SC
The Mumbai Metropolitan Region Development Authority (MMRDA) on Thursday told the Supreme Court that there were 'substantial grounds' for rejecting the technical bid of Larsen and Toubro (L&T) for the proposed approximately Rs 6,000 crore Mumbai Elevated Road Project and the Rs 8,000 crore Road Tunnel Project. 'There are substantial grounds,' Solicitor General Tushar Mehta, appearing for MMRDA, told a bench of Chief Justice of India B R Gavai and A G Masih, which raised doubts about the disqualification. Hearing the matter on May 26, CJI Gavai had wondered how the company chosen by the central government for the construction of the Central Vista project had failed to pass muster for the Mumbai projects. As the bench took up the matter again on Thursday, Mehta urged the court to hear it on Friday. While agreeing to the request, the CJI once again raised the question of L&T being chosen for the Central Vista project. Pointing out that there is public money involved, the CJI added, 'The question is the person who is building Central Vista…'. CJI Gavai, apparently highlighting the need to ensure safety standards, referred to the 2023 collapse of an under-construction tunnel in Uttarakhand where 41 workers were trapped and subsequently rescued. 'L&T is disqualified, but the person who has been granted has such…,' said the CJI. Before he could complete, Senior Advocate Kapil Sibal, appearing for L&T, added, 'Enormous credentials.' Megha Engineering and Infrastructure Limited is the successful L1 bidder for the project. Senior Advocate Mukul Rohatgi, appearing for MMRDA, said, 'We have not shown Your Lordships the reasons. If Your Lordships were to see the reasons…'. The CJI said, 'We will consider it.' Mehta said Rohatgi 'wants to convey that the disqualification is not on any flimsy' grounds. 'Not fanciful' grounds, added Rohatgi. The senior counsel added, 'We have examined the reports. Our problem is that the tender says we cannot disclose'. Rohatgi was implying that the tender conditions restrain the MMRDA from disclosing the reasons for disqualifying a bidder till the contract is awarded. On May 26, the bench had asked MMRDA whether it was willing to retender the projects, failing which, the court said, it would stay the tender process. The Elevated Road Project envisages a 9.80 km bridge passing along the Vasai Creek. It is part of an extension of the Mumbai Coastal Road Project and a part of the MMRDA's larger road expansion project involving the construction of an around 15 km stretch of road from Gaimukh in Thane to Bhayander. The Road Tunnel Project is for the design and construction of an underground road tunnel from Gaimukh to Fountain Hotel Junction on Thane Ghodbunder Road. It envisages 5 km-long twin tunnels of a finished diameter of 14.6 m. 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 the declaration of the L1 bid for both projects to Megha Engineering & Infrastructure Ltd. at a substantially higher project cost. 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 High Court. The same was dismissed via two orders on May 20, following which it approached the Supreme Court.
The Wire
3 days ago
- Business
- The Wire
What do the SC's Stern Words to the MMRDA on Tendering Have to Do With Electoral Bonds?
New Delhi: The Supreme Court has issued a stern directive to the Mumbai Metropolitan Region Development Authority (MMRDA), suggesting it re-tender two major infrastructure projects collectively worth approximately Rs 14,000 crore, or face a stay on the current process. The warning on May 26 came during a hearing on appeals by Larsen & Toubro (L&T) Ltd, which contested its technical disqualification from the bidding for the Mumbai Elevated Road Project and the Road Tunnel Project, where Hyderabad-based Megha Engineering & Infrastructure Ltd (MEIL) emerged as the lowest (L1) bidder. Chief Justice of India B.R. Gavai, presiding over a two-judge bench also comprising Justice A.G. Masih, expressed surprise at L&T's exclusion. 'The very name of the bidder, it's difficult to believe, he has been chosen to construct the Central Vista by the Central government,' CJI Gavai remarked, highlighting L&T's established credentials. He instructed Solicitor General Tushar Mehta and Senior Advocate Mukul Rohatgi, representing MMRDA, to 'take instructions on whether you are willing to re-tender. Otherwise we will stay.' L&T has challenged two Bombay high court orders from May 20, which upheld MMRDA's decision not to communicate the reasons for technical disqualification before awarding the projects. L&T argued this was an arbitrary and non-transparent process, leading to MEIL being declared L1 at a substantially higher cost. L&T claimed its bid was approximately Rs 2,521 crore lower for the Road Tunnel Project (estimated at Rs 8,000 crore) and Rs 609 crore lower for the Elevated Road Project (estimated at Rs 6,000 crore) compared to MEIL. During the hearing, CJI Gavai emphasised the public interest involved. When Rohatgi argued that 'question of money doesn't arise if you are disqualified,' the CJI countered, 'question of money also arises if it's a public interest matter…you better take instructions. The public money would be saved.' He further stressed, 'We are in an era of transparency…if it's arbitrary, the person should have an opportunity to challenge.' MMRDA's counsel maintained there were 'good reasons' for L&T's disqualification and that tender clauses allowed for reasons to be shared post-award to prevent delays from 'unnecessary challenges.' Rohatgi added, 'We will show the reasons for disqualification.' Senior Advocate A.M. Singhvi, appearing for L&T, highlighted the significant cost difference and hinted at the profiles of other bidders, stating, 'Names of the other two left are more important than my name…Their names are very interesting.' The controversy is amplified by the profile of MEIL. The Hyderabad-based firm, valued at Rs 67,500 crore, has been a prominent purchaser of electoral bonds. Data released by the Election Commission of India revealed MEIL bought bonds worth Rs 966 crore, with around 60% (approximately Rs 584 crore) going to the Bharatiya Janata Party (BJP). The Megha group's total donations via electoral bonds, including through associated companies like Western UP Power Transmission Company Limited, SEPC Power, and Evey Trans Private Limited, amount to Rs 1,232 crore, making it one of the largest political donors in the country. This extensive political funding, particularly to the party leading the Union government and in Maharashtra (where MMRDA operates), has cast a shadow on the tender process. MEIL, founded by Pamireddy Pitchi Reddy in 1989 and now run by his nephew P.V. Krishna Reddy, has executed major projects, including the $14 billion Kaleshwaram Lift Irrigation Project in Telangana, which itself faced scrutiny from the Comptroller and Auditor General (CAG) for alleged irregularities. The company also secured the Zojila Tunnel project. The Mumbai Elevated Road Project involves a 9.80 km bridge along Vasai Creek, while the Road Tunnel Project is for a 5-km twin tunnel system on Thane Ghodbunder Road. Both are extensions of the Mumbai Coastal Road project. The Supreme Court has scheduled the next hearing for May 29, where MMRDA is expected to respond to the court's suggestion for a re-tender.
Time of India
13-05-2025
- Business
- Time of India
HC stays opening of bids for Thane road tunnel
Mumbai: The Bombay High Court vacation bench on Tuesday stayed the opening of financial bids for the Thane-Ghodbunder to Bhayandar tunnel and elevated road project. This project is touted to be the second longest flyover after the Atal Setu, which connects Sewri to Nhava over the creek. The Elevated Road is proposed to be an extension to the Mumbai Coastal Road Project and envisages a 9.80 km bridge along the Vasai creek. The stay was granted by HC on a plea by construction giant Larsen & Toubro (L&T), which said it had received no intimation regarding the fate of its bids unlike other contenders. The matter has been posted for hearing first on the board on Mumbai Metropolitan Region Development Authority (MMRDA) had invited bids for the project last July. L&T, represented by senior counsel Janak Dwarkadas, said it submitted technical and financial bids on Dec 30, 2024. The technical bids were opened by MMRDA on Jan 1, 2025 and were under evaluation since. L&T said it has received no intimation from MMRDA so far on the outcome of the evaluation of its company argued that without informing it of the result of the evaluation, the financial bids were scheduled to be opened on May 13. Senior counsel Dwarkadas, seeking an urgent stay on the opening of the bids, said his client was "not a fly-by-night operator. It's one of the leading firms having been associated with some of Mumbai's largest public infrastructure projects." L&T said it recently learnt that some other bidders had received an intimation regarding the opening of the financial bids. Hence, L&T had approached the court to challenge MMRDA's move and seek an urgent stay. Dwarkadas said if financial bids were opened to the exclusion of L&T, it would be contrary to a fair and transparent tender process and well-established legal through solicitor general Tushar Mehta at the hearing before a division bench of Justices Kamal Khata and Arif Doctor, said it was not required to convey to L&T that its bid was found to be unresponsive before opening the financial bids. To this, Dwarkadas said it was unfair for MMRDA to state this orally in court without supplying reasons or grounds for the rejection. Mehta argued that the very fact that L&T was not invited for the financial bid opening meant that its bid was not found responsive. MMRDA was within its rights to open the financial bids and communicate the outcome of the technical evaluation without informing L& company, however, argued that it would be "discriminatory, arbitrary and in violation of the principles of natural justice…with serious consequence of depriving L&T of its valuable constitutional rights..."Mehta said the MMRDA action was justified given that the project is in public interest. The financial bids were to be opened at 11 am and 11:30 am for the Road Tunnel Project and the Elevated Road Project, respectively. The court ordered that until it hears the matter at length on May 14, "financial bids shall not be opened by the Respondent-MMRDA."
