MMRDA Scraps ₹14,000 Crore Tender After SC Rap in L&T Plea
In a recent development that has sent shockwaves through the infrastructure sector, the Maharashtra Metropolitan Region Development Authority (MMRDA) has scrapped two major tenders worth ₹14,000 crore, citing public interest. The decision comes after the Supreme Court closed a plea filed by Larsen & Toubro (L&T), a leading infrastructure company, which had alleged unfair disqualification from the tender process.
The tenders in question were for two major infrastructure projects – the 33.5 km long Elevated Bypass Road (EBR) and the 20 km long Elevated Expressway (EE) – both of which are critical components of the Mumbai Metropolitan Region’s (MMR) transportation infrastructure. The projects were initially awarded to Hyderabad-based Megha Engineering and Infrastructure Private Limited (MEIL) at a cost of ₹14,000 crore.
L&T, which had submitted a lower bid than MEIL, had challenged the tender process in the Supreme Court, alleging that it was unfairly disqualified from the bidding process. The company had claimed that the tender evaluation committee had ignored its technical bid and instead awarded the contract to MEIL despite its lower price.
In response to L&T’s plea, the Supreme Court had issued a notice to the MMRDA, seeking its response on the allegations. The MMRDA had submitted that the tender process was fair and transparent, and that MEIL had been awarded the contract based on its technical and financial capabilities.
However, the Supreme Court was not convinced by the MMRDA’s response and had asked it to explain why L&T’s plea should not be entertained. The MMRDA was given time to file a detailed response, but instead, it decided to scrap the tenders and initiate a fresh bidding process.
The MMRDA’s decision to scrap the tenders has been welcomed by L&T, which had argued that the tender process was marred by irregularities and that the award of contract to MEIL was unfair. “We are pleased that the MMRDA has taken a suo motu decision to cancel the tenders and initiate a fresh bidding process,” said an L&T spokesperson. “We had always maintained that the tender process was flawed and that the award of contract to MEIL was unfair.”
The decision to scrap the tenders has also been welcomed by industry experts, who had expressed concerns over the transparency and accountability of the tender process. “The MMRDA’s decision to scrap the tenders is a welcome move, which demonstrates its commitment to transparency and accountability,” said an industry expert. “It is essential that the tender process is fair and transparent, and that contracts are awarded based on merit and not on other considerations.”
The MMRDA’s decision to scrap the tenders has also raised questions over the role of MEIL in the tender process. MEIL had emerged as the lowest bidder for both projects, but L&T had alleged that the company had used unfair means to secure the contract. The MMRDA had denied the allegations, but the Supreme Court’s decision to close L&T’s plea has raised further questions over the company’s role in the tender process.
The MMRDA’s decision to scrap the tenders has significant implications for the infrastructure sector in Mumbai. The EBR and EE projects are critical components of the city’s transportation infrastructure, and their completion is essential to reduce congestion and improve connectivity. The delay in the projects’ completion is likely to have a significant impact on the city’s economy and commuters, who rely on these projects to travel across the city.
In conclusion, the MMRDA’s decision to scrap the ₹14,000 crore tender after the Supreme Court’s rap in L&T’s plea is a significant development that has sent shockwaves through the infrastructure sector. The decision has raised questions over the transparency and accountability of the tender process, and has significant implications for the infrastructure sector in Mumbai. As the MMRDA initiates a fresh bidding process for the projects, it is essential that the tender process is fair and transparent, and that contracts are awarded based on merit and not on other considerations.
