Bombay HC refuses relief to L&T in tender process for tunnel, elevated road projects connecting Thane with Mira-Bhayandar

Indian Express

20-05-2025

The Bombay High Court Tuesday refused relief to Larsen & Toubro (L&T) in its pleas challenging the opening of financial bids for the Thane-Ghodbunder to Bhayandar tunnel and elevated road projects initiated by the Mumbai Metropolitan Region Development Authority (MMRDA).
A vacation bench of Justices Kamal R Khata and Arif S Doctor passed a verdict on two pleas by L&T, which claimed that it had not received any intimation about the status of its bids, while the other bidders had received the same.
In the case of a plea against the opening of financial bids for an elevated road, the HC refused to continue the stay on the opening of bids and said it was rejecting L&T's request for further stay. In the case of the tunnel project, the HC dismissed L&T's plea stating that it had approached the court with 'suppressed' material.
The HC, however, said the price bids submitted electronically by L&T for both the projects should be preserved in a sealed cover for two weeks to enable it to approach the Supreme Court. The bench said the MMRDA shall communicate the decision related to the tender award as per the Instructions to Bidders (ITB).
The two projects link Thane and Mira-Bhayandar through a tunnel from Gaimukh to Fountain Hotel junction at Shilphata, and an elevated creek road bridge will connect Bhayandar to Ghodbunder Road in Thane.
MMRDA invited tenders for the project in July 2024, and on October 8, responding to a separate plea by L&T, the Authority had said that it would extend by 60 days the last date of submission of bids for the project.
Senior advocates Abhishek Manu Singhvi and Janak Dwarkadas, representing L&T, informed the HC that the technical and financial bids were submitted on December 30, 2024, and MMRDA opened the technical bids on January 1 and were being evaluated, however, the petitioner firm had not received any communication related to the same.
The firm said that without such information about the evaluation result, MMRDA had scheduled the opening of financial bids for the project on May 13. However, it said some other bidders had received an intimation about the opening of financial bids. Therefore, it approached the HC seeking an urgent stay on the same. The firm argued that if the financial bids were opened by excluding it, the same would be contrary to a fair and transparent tender process and against well-established legal norms or principles.
L&T's bid unresponsive before opening financial bids: MMRDA
Solicitor General Tushar Mehta and senior advocate Mukul Rohatgi for MMRDA, however, argued that it was not required to intimate L&T that the firm's bid was found to be unresponsive before opening the financial bids.
The Authority claimed that since the project was in public interest, it was entitled to open the financial bids and communicate the outcome of the technical evaluation without informing L&T. It added that of the five bidders, others were also found unresponsive for both projects at the technical stage and will be informed once the final bidder is selected.
The firm termed it 'discriminatory and arbitrary' and against principles of natural justice.
Earlier, on May 13, the court directed MMRDA not to open financial bids till it hears the plea. On May 15, while concluding the hearing and reserving its order, the bench extended the said arrangement till its decision on May 20.