Supreme Court Weighs in on MMRDA’s Rs 14,000 Crore Road and Tunnel Projects
Introduction
The Supreme Court of India has intervened in the tendering process for the Thane-Ghodbunder to Bhayander tunnel and elevated road projects, directing the Mumbai Metropolitan Region Development Authority (MMRDA) to consult with the Maharashtra government on the possibility of re-tendering. These infrastructure projects, valued at Rs 14,000 crore, aim to enhance connectivity and alleviate congestion in the region.
The directive follows a legal challenge by Larsen & Toubro (L&T), which was disqualified from the tender process and subsequently approached the Supreme Court, seeking to halt the opening of financial bids. The court’s involvement highlights the importance of transparency and fairness in public procurement, particularly for large-scale infrastructure projects that impact urban development and economic growth. This decision is expected to shape the future course of the bidding process, ensuring compliance with legal and procedural standards.
According to a report by The Economic Times, the bench headed by Chief Justice B.R. Gavai emphasised the significant public funds involved and urged the authorities to seek instructions from the state government. The Chief Justice reportedly stated that if the authorities fail to take necessary instructions, the Supreme Court will consider staying the Bombay High Court’s order.
The Bombay High Court had earlier dismissed L&T’s request to stay the tender process but directed the MMRDA to preserve the electronic price bids for two weeks. The projects consist of twin five-kilometre tunnels, connecting Gaimukh to the Fountain Hotel junction at Shilphata, valued at ₹8,000 crore, and a 9.8-kilometre elevated road between Bhayander and Ghodbunder Road in Thane, worth ₹6,000 crore.
Larsen & Toubro (L&T) has alleged procedural irregularities, claiming that the MMRDA did not follow a fair tender process. The company stated that it only became aware of its disqualification during a hearing on 13 May, despite having submitted its technical bid in December.
According to reports, L&T argued that the Bombay High Court failed to address its concerns, describing the tender process as unlawful and arbitrary. The company further claimed that the MMRDA’s decision to open financial bids without informing it of the evaluation outcome was arbitrary and discriminatory, violating the principles of natural justice.
Additionally, reports indicate that the proposed road bridge would be the second-longest in the Mumbai Metropolitan Region, following the Mumbai Trans Harbour Link. The Supreme Court’s directive reinforces the need for transparency and accountability in major infrastructure projects, ensuring that public resources are allocated fairly and efficiently.
Editor’s Note:
The Supreme Court’s directive to re-evaluate the tendering process for the Thane-Ghodbunder to Bhayander tunnel and elevated road projects highlights the critical need for transparency and fairness in infrastructure development. With Rs 14,000 crore at stake, ensuring that the bidding process is conducted ethically is essential to maintaining public trust in large-scale projects. The intervention follows concerns raised by Larsen & Toubro (L&T), which alleged procedural irregularities, raising important questions about fairness in public procurement.
While the court’s involvement upholds legal and procedural integrity, it also serves as a reminder that due diligence in tender evaluations is crucial. Skoobuzz highlights that as urban infrastructure plays a pivotal role in economic growth, ensuring that major projects are executed efficiently and without bias should remain a top priority for policymakers and administrators.
