The Supreme Court of India has raised concerns over the Mumbai Metropolitan Region Development Authority’s (MMRDA) decision to disqualify Larsen & Toubro (L&T) from two major infrastructure projects in Mumbai, collectively valued at ₹14,000 crore.
The apex court has questioned the transparency of the bidding process and has directed MMRDA to consider re-tendering the projects or face a potential stay on the entire process. The projects in question involve the construction of a 9.8-kilometre elevated road connecting Bhayandar to Ghodbunder Road in Thane, estimated at ₹6,000 crore, and twin five-kilometre tunnels from Gaimukh to the Fountain Hotel junction at Shilphata, valued at ₹8,000 crore.
L&T, a prominent player in India’s infrastructure sector, submitted technical bids for both projects. However, the company was disqualified without being informed of the reasons, and its financial bids were not opened. L&T contends that its bids were significantly lower than those of the selected bidder, Megha Engineering & Infrastructure Ltd., by over ₹3,100 crore. The Supreme Court bench, led by Chief Justice BR Gavai, expressed skepticism over MMRDA’s decision, stating, “It’s hard to believe that a company like L&T, which is executing the Central Vista project, is technically unfit for these projects.” The court emphasized the importance of transparency in public procurement and has scheduled the next hearing for May 29.
MMRDA, represented by Solicitor General Tushar Mehta and Senior Advocate Mukul Rohatgi, defended its decision, citing valid reasons for disqualification that could be presented to the court. They argued that disclosing reasons for disqualification before awarding the contract is not mandatory. The Bombay High Court had earlier upheld MMRDA’s decision, stating that while the tender process appeared opaque, L&T had accepted the conditions without prior objection.
The Supreme Court’s intervention underscores the critical need for transparency and fairness in public procurement, especially in projects of such magnitude. The outcome of this case could set a precedent for future infrastructure projects across the country
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