SC Seeks Clarity On Re-tender For MMRDA Tunnel Project After L&T Plea

The Supreme Court on Monday asked the Mumbai Metropolitan Region Development Authority whether it could consider issuing a fresh tender for a ₹80-billion underground road tunnel project between Gaimukh and Fountain Hotel Junction on the Thane-Ghodbunder road in Maharashtra.

The direction came while hearing a petition by Larsen & Toubro Ltd., which had approached the apex court last week seeking a stay on the opening of financial bids for the project.

“This is thousands of crores of public money. Please take instructions... Else we will stay this order (of Bombay High Court),” the court said. The bench also remarked on L&T’s track record, noting the company was awarded the Central Vista project but was now facing this situation. The next hearing is scheduled for Thursday.

On Tuesday, the Bombay High Court had dismissed L&T’s request to stay the bid opening but directed the MMRDA to preserve the price bids for two weeks to allow the petitioner to challenge the decision before the Supreme Court.

Calling it a “mega infrastructure project” of public importance, the high court said any delay would hinder execution. “Conversely, no prejudice whatsoever would be caused to the petitioner if all rights and contentions... are kept open,” it said, referring to L&T’s ability to challenge the technical disqualification and eventual contract award.

L&T had submitted its technical bid for the project in December and said it was awaiting the result of the evaluation. However, the company later learnt that MMRDA had called other bidders to be present for the financial bid opening on May 13, without informing L&T of the status of its bid.

The company argued that MMRDA, as a public authority, was obliged to act in a “non-discriminatory, fair, and transparent manner,” and should have informed it of the outcome of the technical evaluation. Failing to do so was “arbitrary” and violated natural justice, it told the court.

Earlier, the Bombay High Court had in an interim order on May 13 barred MMRDA from opening the bids, but withdrew that restraint in its Tuesday ruling.