The Supreme Court of India has raised serious concerns over the Mumbai Metropolitan Region Development Authority’s (MMRDA) handling of two major infrastructure tenders worth around Rs 14,000 crore. This judicial intervention follows Larsen & Toubro’s (L&T) appeal challenging its technical disqualification from the bidding process for the Mumbai Elevated Road Project (Rs 6,000 crore) and the Road Tunnel Project (Rs 8,000 cr). These projects, essential to improving Mumbai’s connectivity and reducing congestion, have become the focus of heightened scrutiny regarding transparency and fairness in public procurement.
Chief Justice B.R. Gavai, presiding over the case, expressed surprise at L&T’s exclusion, citing the company’s reputable track record, including its selection for the Central Vista redevelopment. L&T contends that it was unfairly disqualified without clear reasons and has highlighted that its bids were significantly lower—by approximately Rs 2,521 crore for the tunnel and Rs 609 crore for the elevated road—than those of Hyderabad-based Megha Engineering & Infrastructure Ltd (MEIL), the current lowest bidder.
The court emphasised the importance of transparency and accountability, with the Chief Justice underscoring that public money must be safeguarded and tender processes must be free from arbitrariness. The hearing also drew attention to MEIL’s political donations via electoral bonds amounting to nearly Rs 1,232 crore, raising questions about possible undue influence.
Both projects are critical infrastructure undertakings — a 9.8 km elevated road over Vasai Creek and a 5 km twin tunnel on Thane Ghodbunder Road — aimed at easing Mumbai’s traffic woes. The Supreme Court has scheduled the next hearing for 29 May, expecting MMRDA to respond on the possibility of re-tendering.
This case not only affects Mumbai’s infrastructure future but also sets a pivotal precedent for integrity and fairness in public tenders across India, highlighting the need for transparent governance in urban development.
Source: Urban Acres
