MMRDA Scraps ₹14,000 Crore Tender After SC Rap in L&T Plea
In a significant development, the Mumbai Metropolitan Region Development Authority (MMRDA) has scrapped the tender for two major infrastructure projects worth ₹14,000 crore. The decision comes on the heels of a Supreme Court rap, which closed the plea of Larsen & Toubro (L&T) alleging unfair disqualification of their bid.
L&T, a leading infrastructure company, had challenged the MMRDA’s decision to award the tenders to Hyderabad-based Megha Engineering & Infrastructure Ltd (MEIL). MEIL had emerged as the lowest bidder for the two projects, which include the construction of a Metro Rail project and a package of road works.
The controversy surrounding the tender process began when MMRDA cancelled the bids of L&T and two other companies, citing technical irregularities. L&T, however, claimed that it had been unfairly disqualified despite offering a lower bid than MEIL. The company approached the Supreme Court, which issued a notice to MMRDA, seeking its response.
In response, MMRDA claimed that it scrapped the tenders in the interest of public good, as the projects had stalled due to the litigations. The authority also argued that the tender process was transparent and in accordance with the norms.
However, the Supreme Court was not convinced by MMRDA’s arguments. In its order, the court observed that the authority’s decision to scrap the tender was “arbitrary and unsustainable.” The court also noted that the cancellation of the tender was a “classic case of abuse of power” and that MMRDA had acted in a “mala fide” manner.
Given the Supreme Court’s stern rebuke, MMRDA has now decided to scrap the tender and initiate a fresh bidding process. The decision has been welcomed by L&T, which had been seeking justice for its alleged unfair treatment.
The controversy surrounding the tender process has raised questions about the transparency and accountability of MMRDA. Critics have argued that the authority’s decision to cancel the tender was a clear case of favoritism towards MEIL, which had emerged as the lowest bidder.
The scrapped tenders were part of a larger infrastructure development plan aimed at improving the infrastructure of Mumbai. The projects were expected to create thousands of jobs and boost the city’s economy. The scrapping of the tenders is likely to cause a delay in the completion of the projects, which will have a ripple effect on the city’s infrastructure development.
The MMRDA’s decision to scrap the tender is a significant setback for MEIL, which had won both tenders. The company had been seeking to expand its presence in the Indian infrastructure sector and had been eyeing the Mumbai projects as a major growth opportunity.
In conclusion, the Supreme Court’s rap in L&T’s plea has led to the scrapping of the tender worth ₹14,000 crore. The decision has raised questions about the transparency and accountability of MMRDA and has caused a delay in the completion of the infrastructure projects. As the city of Mumbai continues to grow and develop, it is essential that the authorities ensure that the tender process is fair, transparent, and in the interest of the public.
