Latest news with #MumbaiElevatedRoadProject
The Hindu
an hour ago
- Politics
- The Hindu
Aaditya Thackeray demands probe into scrapped MMRDA tenders
Aaditya Thackeray, who represents the Worli constituency in the State Legislative Assembly, on Saturday (May 31, 2025) called upon Maharashtra Chief Minister Devendra Fadnavis to initiate a probe against Deputy Chief Minister Eknath Shinde, following the Mumbai Metropolitan Region Development Authority's (MMRDA) decision to cancel the tender process for two major infrastructure projects in Mumbai. The two projects in question are the ₹6,000-crore Mumbai Elevated Road Project, involving a 9.8-kilometre bridge along the Vasai Creek, and the ₹8,000-crore Road Tunnel Project, which includes the construction of five-kilometre twin tunnels from Gaimukh to the Fountain Hotel Junction on Thane's Ghodbunder Road. 'Why should the government back down? No contractor goes against the government for one tender. This is only a scam. Cancelling the tender does not mean everything is clean. You [the MMRDA] had a hanging sword which is why you had to cancel the tender,' Mr. Thackeray said. 'Will CM Fadnavis get the matter probed by EOW, IT or ED? The CM should himself take charge of the MMRDA,' he continued. 'Shinde's corruption is proved. Will you sack him from the cabinet till the probe gets over? He has to face action,' Mr. Thackeray added. The statement gains significance as the MMRDA, which operates under the Urban Development Department led by Mr. Shinde, informed the Supreme Court that it was cancelling two tenders linked to the Gaimukh-Ghodbunder-Bhayander project. The authority said it would issue fresh tenders 'to safeguard larger public interest'. Further, the MMRDA stated that it was actively considering a downward revision of the base cost by ₹3,000 crore, based on financial bids disclosed during ongoing litigation. The Supreme Court, while hearing a petition filed by infrastructure major Larsen & Toubro (L&T) challenging its disqualification from the tender process, also expressed criticism over the MMRDA's handling of the matter. Mr. Thackeray noted that the original tender was floated on September 13, 2024, with a bid submission deadline of October 3, 2024 — a window typically reserved for emergency projects. 'Such short notice is not appropriate for large-scale infrastructure works,' he said, adding that the deadline was only extended to 60 days after he raised objections. He further alleged that the terms of the tender were crafted in a manner that would favour 'preferred contractors.'
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Business Standard
4 hours ago
- Politics
- Business Standard
Aaditya Thackeray seeks Dy CM Shinde's ouster over scrapped MMRDA tenders
Shiv Sena (UBT) leader Aaditya Thackeray on Saturday called for the removal of Maharashtra Deputy Chief Minister Eknath Shinde after the Mumbai Metropolitan Region Development Authority (MMRDA) informed the Supreme Court on Friday that it had cancelled the tender process for two major infrastructure projects in Mumbai. Speaking at a press conference, Thackeray urged Chief Minister Devendra Fadnavis to initiate an investigation against Shinde through the Economic Offences Wing (EOW), the Enforcement Directorate (ED), or the Income Tax Department. Tender cancellation and SC hearing Earlier on Friday, the MMRDA, chaired by Shinde who also holds the Urban Development portfolio, told the Supreme Court that it was withdrawing two tenders linked to the Gaimukh-Ghodbunder-Bhayander project. Engineering and construction major Larsen & Toubro had challenged the award of the contract to Megha Engineering, and questioned why it had been disqualified. The authority stated it would restart the bidding process "to safeguard larger public interest". The MMRDA said this step was being taken voluntarily to strengthen public confidence and ensure better use of taxpayers' money. It also noted that a reduction in the base cost by about Rs 3,000 crore was being considered, based on financial bids submitted during the court proceedings. Thackeray questioned the move, saying, "Why should the government back down? No contractor goes against the government for one tender. This is only a scam. Cancelling the tender does not mean everything is clean. You (the MMRDA) had a hanging sword which is why you had to cancel the tender." He added, "Will CM Fadnavis get the matter probed by EOW, IT or ED? The CM should himself take charge of the MMDRA." Allegations of corruption Continuing his criticism, Thackeray said, "Shinde's corruption is proved. Will you sack him from the cabinet till the probe gets over? He has to face action." The Supreme Court also criticised the MMRDA during its hearing of a plea filed by infrastructure firm Larsen & Toubro (L&T), which was challenging its disqualification from the bidding process. The two projects under scrutiny include the Rs 6,000-crore Mumbai Elevated Road Project, which involves a 9.8-kilometre bridge over Vasai Creek, and the Rs 8,000-crore Road Tunnel Project, consisting of twin 5-km tunnels from Gaimukh to the Fountain Hotel Junction on Ghodbunder Road in Thane. Concerns over tender conditions Thackeray also referred to concerns he had raised earlier. He pointed out that when the tender was first floated on September 13, 2024, bidders were given only 20 days to submit their proposals, or by October 3, 2024. He stated that such short deadlines are typically reserved for urgent works and not large-scale projects. According to him, after he raised objections, the deadline was extended to 60 days. He also highlighted that a bank guarantee came from a financial institution based in St Louis, a Caribbean nation, and said the MMRDA rolled back its decision only after he raised the issue. Thackeray claimed the tender rules were created to benefit select contractors. According to him, "The tender conditions were designed in such a way that some 'favourite contractors' could bag it.
Time of India
17 hours ago
- Business
- Time of India
Tenders for Mumbai road projects worth Rs 14,000cr scrapped, SC told
Representative image Mumbai Metropolitan Region Development Authority (MMRDA) on Friday informed Supreme Court it had decided to scrap the tenders for the proposed Rs 6,000 crore Mumbai Elevated Road Project and the Rs 8,000 crore Road Tunnel Project. The matter reached SC after Larsen and Toubro challenged the decision of MMRDA to reject its technical bids for the projects. Megha Engineering and Infrastructure Ltd, which was a prominent purchaser of electoral bonds prior to these getting scrapped by SC, was declared the successful bidder. A bench of CJI B R Gavai and Justices A G Masih and A S Chandurkar had expressed surprise over Megha emerging as successful bidder on Thursday. "It is for the Maharashtra govt to take a call on whether to invite fresh tenders for the two projects," it said and disposed of the L&T's appeal as infructuous.
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.
