MMRDA Scraps ₹14,000 Crore Tender After SC Rap in L&T Plea
In a major development, the Maharashtra Metro Rail Development Authority (MMRDA) has scrapped a tender worth ₹14,000 crore for two major infrastructure projects in Mumbai, following a rap from the Supreme Court. The projects, which were allegedly awarded to Hyderabad-based Megha Engineering, have been cancelled by MMRDA, citing public interest. This move comes after Larsen & Toubro (L&T), one of India’s largest construction companies, filed a petition in the Supreme Court alleging unfair disqualification from the tender process.
According to reports, L&T had offered a lower bid than Megha Engineering for the two projects, which included the construction of a metro rail line and a highway in Mumbai. Despite this, Megha Engineering was awarded the contracts, prompting L&T to file a petition in the Supreme Court. The petition alleged that MMRDA had unfairly disqualified L&T from the tender process and that the award of contracts to Megha Engineering was arbitrary and illegal.
The Supreme Court, while hearing L&T’s petition, had issued a notice to MMRDA, asking it to respond to the allegations. MMRDA, in its response, had claimed that it had cancelled the tenders in the public interest, as the projects required urgent execution to meet the needs of Mumbai’s rapidly growing population.
However, the Supreme Court was not convinced by MMRDA’s response and had asked the authority to explain why it had cancelled the tenders. This led to a series of hearings, during which L&T’s counsel argued that the cancellation of tenders was a clear case of vindictive action taken by MMRDA against L&T.
On August 12, the Supreme Court closed L&T’s petition, stating that it was not inclined to entertain the petition further. The court’s decision came after MMRDA’s counsel informed the court that the authority had cancelled the tenders in the public interest. The court, while dismissing L&T’s petition, observed that public interest was a paramount consideration in the tender process and that MMRDA had acted in a way that was in the best interests of the public.
The decision to cancel the tenders has been welcomed by many, who have been critical of MMRDA’s handling of the tender process. “This is a victory for transparency and accountability in the government’s dealings,” said a civil society activist. “The cancellation of tenders is a clear indication that MMRDA was not acting in good faith and that it was trying to favour a particular company at the expense of the public.”
The move has also been seen as a blow to Megha Engineering, which had won both tenders. The company had offered a higher bid than L&T, but had still managed to secure the contracts. The cancellation of tenders means that Megha Engineering will not be able to execute the projects, and it is unclear what the future holds for the company.
The decision to cancel the tenders has also raised questions about the tender process and the way in which MMRDA handles its contracts. Many have called for greater transparency and accountability in the tender process, to ensure that contracts are awarded fairly and in the best interests of the public.
In conclusion, the cancellation of the ₹14,000 crore tender by MMRDA is a significant development in the world of Indian infrastructure. The move has been hailed as a victory for transparency and accountability, and it serves as a reminder of the importance of fair and square dealings in the public sector.
