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 two major infrastructure tenders worth ₹14,000 crore, citing public interest. This move comes after the Supreme Court closed the plea of Larsen & Toubro (L&T), a leading infrastructure company, which had alleged unfair disqualification from the tenders.
The tenders in question were for the construction of the Versova-Bandra Sea Link and the Dahisar Mulund Link Road, two critical infrastructure projects in Mumbai. MMRDA had awarded these tenders to Megha Engineering, a Hyderabad-based company, despite L&T offering a lower bid. L&T had challenged the decision in the Supreme Court, claiming that it was unfairly disqualified from the tenders.
The Supreme Court has now closed the plea of L&T, paving the way for MMRDA to re-tender the projects. In its decision, the court observed that the alleged unfair disqualification had caused “irreparable harm” to L&T, and therefore, the authority should re-tender the projects to ensure transparency and fairness.
The Versova-Bandra Sea Link project involves the construction of a 17-kilometer long elevated road that will connect Versova to Bandra. The project is expected to decongest the Western Express Highway and reduce travel time between the two locations. The Dahisar Mulund Link Road project, on the other hand, involves the construction of a 14-kilometer long elevated road that will connect Dahisar to Mulund. The project is expected to reduce traffic congestion in the eastern suburbs of Mumbai.
L&T had offered a bid of ₹8,000 crore for the Versova-Bandra Sea Link project, which was lower than the bid of ₹10,000 crore offered by Megha Engineering. Similarly, L&T had offered a bid of ₹5,000 crore for the Dahisar Mulund Link Road project, which was lower than the bid of ₹6,000 crore offered by Megha Engineering.
L&T had approached the Supreme Court after MMRDA rejected its plea for reconsideration. The company had claimed that MMRDA had unfairly disqualified it from the tenders due to technical reasons, despite its bids being lower than those of Megha Engineering. L&T had also alleged that MMRDA had not followed the tendering process correctly, and that the authority had favored Megha Engineering due to its “strong connections” with the government.
In its defense, MMRDA had claimed that L&T’s bids were not compliant with the tender conditions, and that the company had not submitted the required documents. However, L&T had disputed these claims, arguing that MMRDA had not followed the tendering process correctly and that the authority had made arbitrary decisions.
The Supreme Court’s decision to close L&T’s plea has come as a relief to MMRDA, which had been facing criticism for allegedly favoring Megha Engineering. The authority had been accused of ignoring the tendering process and instead awarding the contracts to Megha Engineering due to its “strong connections” with the government.
The re-tendering of the projects is expected to ensure transparency and fairness in the process. MMRDA has been directed to re-tender the projects and to ensure that the tendering process is followed correctly. The authority has also been directed to disclose the reasons for the re-tendering of the projects.
The Supreme Court’s decision is a significant development for the infrastructure sector in India. The decision highlights the importance of transparency and fairness in the tendering process, and the need for authorities to follow the law correctly. The decision also underscores the need for authorities to ensure that the tendering process is free from corruption and favoritism.
In conclusion, the Supreme Court’s decision to close L&T’s plea and re-tender the Versova-Bandra Sea Link and Dahisar Mulund Link Road projects is a significant development for the infrastructure sector in India. The decision highlights the importance of transparency and fairness in the tendering process, and the need for authorities to follow the law correctly.
