Supreme Court flags concern over L&T's plea against Bombay HC's refusal to stay bids in Rs 14,000 crore MMRDA infra project

New Delhi [India], May 26 (ANI): The Supreme Court on Monday expressed concern over a plea filed by engineering giant Larsen & Toubro (L&T) challenging the Bombay High Court's refusal to stay the opening of bids by the Mumbai Metropolitan Region Development Authority (MMRDA) for two road construction projects in Maharashtra, worth Rs 14,000 crore.
L&T has alleged irregularities in the bidding process, claiming that, unlike other bidders, it was not informed about the status of its bid.
During the hearing today, a bench of Chief Justice of India BR Gavai and Justice Augustine George Masih asked the counsels appearing for MMRDA to seek instructions from MMRDA on its position in this regard.
The bench also noted that the matter involves thousands of crores of public money.
"This is thousands of crores of public money. Please take instructions, else we will stay this order," CJI Gavai said to SG Mehta.
The top-court posted the matter to be heard next on Thursday.
Earlier, on May 23, a Supreme Court bench led by Justice JB Pardiwala had, after hearing the parties observed that there is an extreme urgency in the matter before listing it before the CJI's bench for today.
On July 27, 2024, MMRDA notified inviting bids for a major public infrastructure project involving an underground road tunnel from Gaimukh to Fountain Hotel Junction on Thane Ghodbunder Road. The project involves constructing 5 km long twin tunnels, estimated at Rs8,000 crore, and forms part of a larger 15 km road expansion from Gaimukh to Bhayander, extending the Mumbai Coastal Road project.
L&T, a bidder for the said project, submitted its technical bid on December 13, 2024, which was opened on January 1, 2025. It has stated that since then, it has received no update on the evaluation of its bid.
L&T claims it was neither informed that its technical bid was non-responsive nor invited to the financial bid opening, unlike other bidders.
This, L&T argues, is unfair, discriminatory, and contrary to the principles of natural justice. It alleges that MMRDA, as a public authority, is obligated to act transparently and inform all bidders of the outcome of the technical evaluation before proceeding.
Hence, L&T, in this regard, had sought a stay of the opening of bids.
The Bombay High Court however dismissed L&T's plea stating that said project is a mega-infrastructure project of significant public importance and any delay of the same would adversely impact the execution of the project.
The High Court also clarified that it is open for L&T to challenge the rejection of its technical bid and that of the award of contract.
L&T, thus, moved the Court challenging the decision of the Bombay High Court in having dismissed its plea seeking a stay of the opening of the bid.
The Supreme Court today listed the matter to be heard on Thursday. (ANI)