MMRDA Scraps ₹14,000 Crore Tender After SC Rap in L&T Plea
In a significant development, the Maharashtra Metro Rail Development Authority (MMRDA) has scrapped two major tenders worth ₹14,000 crore for infrastructure projects in Mumbai, following a stern rap from the Supreme Court. The move comes after Larsen & Toubro (L&T) filed a plea alleging unfair disqualification from the tender process, despite offering a lower bid than Hyderabad-based Megha Engineering, which won both tenders.
The MMRDA had floated tenders for the construction of the Bandra-Versova Sea Link and the Andheri-Ghatkopar Link in May 2022. Megha Engineering, which is a leading infrastructure company, emerged as the winning bidder for both projects, submitting bids of ₹8,800 crore and ₹6,400 crore respectively. L&T, which is one of the largest construction companies in India, had submitted bids of ₹7,500 crore and ₹5,600 crore for the same projects.
However, L&T alleged that it was unfairly disqualified from the tender process, citing irregularities in the evaluation of bids. The company claimed that the MMRDA had not followed the tender norms and had given undue benefits to Megha Engineering. L&T moved the Supreme Court, seeking a stay on the tender process and alleging that the MMRDA’s decision was arbitrary and illegal.
The Supreme Court, in its order, observed that the MMRDA’s actions were motivated by public interest and that the company had not followed the tender norms. The court also noted that L&T had not provided sufficient evidence to support its claims of unfair disqualification.
In light of the Supreme Court’s order, the MMRDA has scrapped the tenders, citing public interest. This move is seen as a major setback for Megha Engineering, which had won both tenders and was poised to bag the lucrative contracts.
The development has sent shockwaves through the infrastructure sector, with many experts and analysts questioning the MMRDA’s decision-making process. The move has also raised questions about the transparency and accountability of the tender process in India.
The MMRDA’s decision to scrap the tenders has also sparked concerns about the project’s timeline and feasibility. The Bandra-Versova Sea Link and the Andheri-Ghatkopar Link are critical infrastructure projects that are expected to improve connectivity and reduce traffic congestion in Mumbai.
The development has also raised concerns about the impact on the economy and the livelihoods of thousands of people who were expected to be employed in the projects. The projects were expected to create thousands of jobs and stimulate economic growth in the region.
The Supreme Court’s order has sent a strong message to the MMRDA and other government agencies to ensure transparency and accountability in the tender process. The court’s intervention has also highlighted the need for robust regulatory mechanisms to ensure that public money is spent in a transparent and accountable manner.
The MMRDA’s decision to scrap the tenders is a significant development that has implications for the infrastructure sector and the economy as a whole. The move has raised questions about the transparency and accountability of the tender process in India and has sent a strong message to government agencies to ensure public interest is paramount.
