‘Substantial grounds’ for rejecting L&T bid for Mumbai elevated road and tunnel projects, MMRDA tells SC

Hearing the matter on May 26, CJI Gavai had wondered how the company chosen by the central government for the construction of the Central Vista project had failed to pass muster for the Mumbai projects.

As the bench took up the matter again on Thursday, Mehta urged the court to hear it on Friday.

While agreeing to the request, the CJI once again raised the question of L&T being chosen for the Central Vista project. Pointing out that there is public money involved, the CJI added, “The question is the person who is building Central Vista…”.

CJI Gavai, apparently highlighting the need to ensure safety standards, referred to the 2023 collapse of an under-construction tunnel in Uttarakhand where 41 workers were trapped and subsequently rescued.

“L&T is disqualified, but the person who has been granted has such…,” said the CJI. Before he could complete, Senior Advocate Kapil Sibal, appearing for L&T, added, “Enormous credentials.”

Megha Engineering and Infrastructure Limited is the successful L1 bidder for the project.

Senior Advocate Mukul Rohatgi, appearing for MMRDA, said, “We have not shown Your Lordships the reasons. If Your Lordships were to see the reasons…”.

The CJI said, “We will consider it.”

Mehta said Rohatgi “wants to convey that the disqualification is not on any flimsy” grounds. “Not fanciful” grounds, added Rohatgi.

The senior counsel added, “We have examined the reports. Our problem is that the tender says we cannot disclose”. Rohatgi was implying that the tender conditions restrain the MMRDA from disclosing the reasons for disqualifying a bidder till the contract is awarded.

On May 26, the bench had asked MMRDA whether it was willing to retender the projects, failing which, the court said, it would stay the tender process.

The Elevated Road Project envisages a 9.80 km bridge passing along the Vasai Creek. It is part of an extension of the Mumbai Coastal Road Project and a part of the MMRDA’s larger road expansion project involving the construction of an around 15 km stretch of road from Gaimukh in Thane to Bhayander.

The Road Tunnel Project is for the design and construction of an underground road tunnel from Gaimukh to Fountain Hotel Junction on Thane Ghodbunder Road. It envisages 5 km-long twin tunnels of a finished diameter of 14.6 m.

The principal ground of L&T’s challenge is that it was technically disqualified from the process without any intimation or reasons. It contended that the arbitrary and non-transparent manner of carrying out the tender process has resulted in the declaration of the L1 bid for both projects to Megha Engineering & Infrastructure Ltd. at a substantially higher project cost.

L&T had initially challenged the MMRDA’s decision to proceed with the opening of the price bids without the presence of L&T, and without communication of any disqualification to it, before the Bombay High Court. The same was dismissed via two orders on May 20, following which it approached the Supreme Court.