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, following a stern rap from the Supreme Court. The projects, which were awarded to Hyderabad-based Megha Engineering, were challenged by Larsen & Toubro (L&T) in the apex court, citing unfair disqualification despite offering a lower bid.
The MMRDA’s decision to scrap the tender comes as a major setback to Megha Engineering, which had won both tenders with a bid of ₹14,000 crore. However, L&T had alleged that it was unfairly disqualified from the bidding process, despite offering a lower bid of ₹13,500 crore.
The Supreme Court, in its order, observed that the MMRDA’s decision to award the tenders to Megha Engineering was arbitrary and against public interest. The court also noted that the MMRDA had failed to provide adequate reasons for disqualifying L&T from the bidding process.
L&T had approached the Supreme Court after the MMRDA rejected its plea challenging the tender process. The company had contended that it was unfairly disqualified from the bidding process due to a technical glitch, which had resulted in its bid being rejected. L&T had also alleged that the MMRDA had not followed the tender guidelines and had awarded the tenders to Megha Engineering without considering the lowest bidder.
In its order, the Supreme Court observed that the MMRDA’s decision to award the tenders to Megha Engineering was arbitrary and against public interest. The court also noted that the MMRDA had failed to provide adequate reasons for disqualifying L&T from the bidding process.
The Supreme Court’s order has sent shockwaves in the infrastructure sector, as it highlights the need for transparency and fairness in the tendering process. The decision is also seen as a major victory for L&T, which had been fighting for its rights in the courts for several months.
The scrapped tenders were for two major infrastructure projects in Mumbai, including a 22-kilometer metro rail corridor and a 14-kilometer highway project. The projects were expected to be completed in the next three to four years and were seen as a major boost to Mumbai’s infrastructure.
The MMRDA’s decision to scrap the tender has raised questions about the future of the two projects. While the MMRDA has not yet announced a new tender process, it is expected to do so in the coming weeks.
In the meantime, the MMRDA has asked the contractor to return the earnest money deposit (EMD) and has also terminated the agreement. The MMRDA has also assured that it will take necessary steps to ensure that the projects are completed in a timely and cost-effective manner.
The Supreme Court’s order has also sent a strong message to other government agencies and private contractors about the importance of transparency and fairness in the tendering process. The court’s decision is seen as a major step towards ensuring that public procurement is done in a fair and transparent manner, and that the rights of all bidders are protected.
In conclusion, the MMRDA’s decision to scrap the tender for two major infrastructure projects worth ₹14,000 crore is a significant development in the context of public procurement in India. The Supreme Court’s order has sent a strong message about the importance of transparency and fairness in the tendering process, and has highlighted the need for government agencies to ensure that public procurement is done in a fair and transparent manner.
