The Supreme Court on Friday accepted the Maharashtra government’s decision to scrap the entire tender process for two high-value infrastructure projects worth Rs 14,000 crore, terming it a move made in the larger public interest.
With this, Larsen & Toubro’s (L&T) appeal was disposed of as 'infructuous' by a bench led by Justice J.B. Pardiwala, bringing relief to the company, which had challenged the process following concerns over lack of transparency.
L&T's shares were trading at Rs 3,676.80 a piece on the BSE on Friday, up 0.59 per cent, as of 12.25 PM.
The projects involve the construction of a road tunnel between Gaimukh and Fountain Hotel Junction, and an elevated road along the Thane-Ghodbunder corridor, key links in Mumbai’s coastal road initiative.
The top court’s order means that the existing bids, including L&T’s, stand void, prompting a possible re-initiation of the tender process by the Mumbai Metropolitan Region Development Authority ( MMRDA). While the legal outcome doesn’t grant L&T the contracts it sought, it does provide a new opportunity to make fresh bids.
The Bombay High Court had earlier dismissed L&T’s petitions seeking a stay on the opening of financial bids, accusing the firm of approaching the court with 'suppressed material.' L&T had alleged that it was not informed about the status of its bid while other bidders were, raising questions about fair treatment in the bidding process.
Represented by senior advocates A.M. Singhvi and Ranjit Kumar, L&T challenged the process after submitting bids in December 2024. The MMRDA, backed in court by Solicitor General Tushar Mehta and senior advocate Mukul Rohatgi, argued that public interest justified its actions and that it was under no obligation to notify disqualified bidders before opening financial bids.
The two infrastructure projects, estimated at Rs 6,000 crore for the elevated road and Rs 8,000 crore for the tunnel, are seen as crucial to reducing travel time between Mumbai’s suburbs and core urban areas. One of the planned bridges is set to become the second-largest in the state after the Mumbai Trans Harbour Link (Atal Setu).
With this, Larsen & Toubro’s (L&T) appeal was disposed of as 'infructuous' by a bench led by Justice J.B. Pardiwala, bringing relief to the company, which had challenged the process following concerns over lack of transparency.
L&T's shares were trading at Rs 3,676.80 a piece on the BSE on Friday, up 0.59 per cent, as of 12.25 PM.
The projects involve the construction of a road tunnel between Gaimukh and Fountain Hotel Junction, and an elevated road along the Thane-Ghodbunder corridor, key links in Mumbai’s coastal road initiative.
The top court’s order means that the existing bids, including L&T’s, stand void, prompting a possible re-initiation of the tender process by the Mumbai Metropolitan Region Development Authority ( MMRDA). While the legal outcome doesn’t grant L&T the contracts it sought, it does provide a new opportunity to make fresh bids.
The Bombay High Court had earlier dismissed L&T’s petitions seeking a stay on the opening of financial bids, accusing the firm of approaching the court with 'suppressed material.' L&T had alleged that it was not informed about the status of its bid while other bidders were, raising questions about fair treatment in the bidding process.
Represented by senior advocates A.M. Singhvi and Ranjit Kumar, L&T challenged the process after submitting bids in December 2024. The MMRDA, backed in court by Solicitor General Tushar Mehta and senior advocate Mukul Rohatgi, argued that public interest justified its actions and that it was under no obligation to notify disqualified bidders before opening financial bids.
The two infrastructure projects, estimated at Rs 6,000 crore for the elevated road and Rs 8,000 crore for the tunnel, are seen as crucial to reducing travel time between Mumbai’s suburbs and core urban areas. One of the planned bridges is set to become the second-largest in the state after the Mumbai Trans Harbour Link (Atal Setu).
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