MMRDA Scraps ₹14,000 Crore Tender After SC Rap in L&T Plea
In a recent development, the Mumbai Metropolitan Region Development Authority (MMRDA) has scrapped two major infrastructure tenders worth ₹14,000 crore, citing public interest. The decision comes after the Supreme Court closed a petition filed by Larsen & Toubro (L&T), a leading construction company, alleging unfair disqualification from the tender process.
According to the reports, MMRDA had awarded the tenders to Hyderabad-based Megha Engineering for two major projects in Mumbai. However, L&T had filed a petition in the Supreme Court claiming that it had offered a lower bid for the projects, but was unfairly disqualified from the tender process. The company had alleged that MMRDA had discriminated against it and favored Megha Engineering, which had bid higher prices for the projects.
The Supreme Court had taken cognizance of the matter and issued a notice to MMRDA, seeking its response on L&T’s plea. In its response, MMRDA had claimed that the tenders had been awarded in the public interest, and that L&T’s plea was not maintainable. However, the Supreme Court was not convinced by MMRDA’s response and asked it to take necessary steps to ensure that the tenders were re-tendered.
Following the Supreme Court’s direction, MMRDA has now scrapped the tenders worth ₹14,000 crore and has announced that it will re-tender the projects. The decision has sent shockwaves in the infrastructure sector, with many industry experts terming it as a setback for the construction industry.
The scrapped tenders include a project to construct a 33.4-kilometer long metro line from Wadala to Chembur, and another project to build a 17.5-kilometer long metro line from Cuffe Parade to SEEPZ. The projects were valued at ₹7,000 crore and ₹7,000 crore, respectively.
L&T had been a strong contender for the tenders, having submitted the lowest bid for both projects. However, MMRDA had disqualified it from the tender process, citing technical reasons. L&T had then filed a petition in the Supreme Court, alleging that MMRDA had unfairly disqualified it and favored Megha Engineering.
The Supreme Court’s decision to close L&T’s plea has come as a relief to Megha Engineering, which had won the tenders. However, the company has been facing heat from the construction industry, with many experts terming the tender process as unfair and opaque.
The MMRDA’s decision to scrap the tenders has also raised questions about the transparency and accountability of the government agency. Many experts have criticized MMRDA for its lack of transparency in the tender process and its failure to provide adequate information to bidders.
The MMRDA’s decision to re-tender the projects is a welcome development, but it remains to be seen whether the agency will ensure that the tender process is fair and transparent this time around. The government agency has a reputation for being opaque and non-transparent in its dealings, and many experts have questioned its ability to deliver major infrastructure projects on time and within budget.
In conclusion, the MMRDA’s decision to scrap the ₹14,000 crore tenders is a significant development in the infrastructure sector. The Supreme Court’s direction to re-tender the projects has sent a clear message that the government agency must ensure transparency and accountability in its dealings.
