Tunnel Project
In relief to L&T, Maharashtra govt to scrap tender for Mumbai tunnel project
This story was originally published at 13:22 IST on 30 May 2025
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--Govt to SC in L&T case: Will scrap tender for Mumbai tunnel project
--CONTEXT: L&T sought stay on fincl bids opening for Mumbai tunnel project
NEW DELHI – In relief to Larsen & Toubro Ltd., the Mumbai Metropolitan Region Development Authority told the Supreme Court that the Maharashtra government would scrap the tender for INR 80-billion project to design and construct an underground road tunnel from Gaimukh to Fountain Hotel Junction on the Thane-Ghodbunder road in Maharashtra. Larsen & Toubro had moved the Supreme Court, seeking a stay on the opening of financial bids for the tunnel project.
"It is fairly stated that the entire tender process is scrapped in larger public interest. Thus, the plea is disposed of as infructuous," said the bench, led by Chief Justice of India B.R. Gavai.
On Monday, the Supreme Court had asked Mumbai Metropolitan Region Development Authority whether a re-tender could be issued for the project. "This is thousands of crores of public money. Please take instructions...Else, we will stay this order (of Bombay High Court)," the top court said.
Earlier this month, the Bombay High Court had rejected Larsen & Toubro's plea seeking a stay on the opening of financial bids for the project. The project is a "mega infrastructure project" of significant public importance, the high court had said, and any delay would adversely affect its execution. "Conversely, no prejudice whatsoever would be caused to the petitioner if all rights and contentions of the petitioner are kept open to challenge the rejection of the petitioner's technical bid as well as the award of the contract," the high court added.
L&T was one of the bidders for the project. In December, it submitted its technical bid. Since then, it has been waiting for the evaluation of the technical bids. Recently, it learnt that the Mumbai Metropolitan Region Development Authority had sent letters to some bidders to remain present for opening of the financial bids on May 13. However, L&T did not receive any such intimation, it said.
The Mumbai authority, being a public authority, is bound to act in a non-discriminatory, fair, and transparent manner, the company told the court, and intimate the petitioner about the outcome of the evaluation of its technical bid before opening the financial bids. "The decision to open financial bids in the absence of the petitioner without intimating them of the outcome of the evaluation of its technical bid is discriminatory and arbitrary and in violation of the principles of natural justice," Larsen & Toubro said. End
At 1303, the shares of Larsen & Toubro Ltd. were up 0.4% at INR 3,671.10 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Surya Tripathi
Edited by Avishek Dutta
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