Bombay High Court denies L&T relief in case against MMRDA over ₹14,000-crore road projects

Mumbai: The Bombay High Court has denied relief to Larsen & Toubro (L&T) over its petitions contesting the opening of financial bids for the Thane-Ghodbunder to Bhayander tunnel and elevated road projects, valued at over ₹14,000 crore, undertaken by the Mumbai Metropolitan Region Development Authority (MMRDA). A detailed order is awaited.

On Tuesday a division bench led by Justices Kamal R. Khata and Arif S. Doctor delivered a ruling on two petitions filed by L&T, in which the company alleged that it had not been informed about the status of its bids, while the other bidders had received such updates.

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On the plea contesting the opening of financial bids for the elevated road project, the court declined L&T's request to further extend the stay on the opening of bids.

The court also directed that the bids submitted electronically by L&T for both projects be preserved in a sealed cover for two weeks, giving the company time to approach the Supreme Court. The high court also instructed the MMRDA to communicate the tender award decision in accordance with the instructions to bidders (ITB).

Case history

The two infrastructure projects aim to connect Thane and Mira-Bhayandar —a tunnel from Gaimukh to the Fountain Hotel junction at Shilphata, and an elevated creek bridge linking Bhayandar to Ghodbunder Road in Thane. The proposed bridge would be the second-largest in the region after the Mumbai Trans Harbour Link (MTHL), also known as Atal Setu. 

MMRDA invited tenders in July 2024, and on 8 October, in response to a separate petition by L&T, the agreed to extend the deadline to submit bids by 60 days.

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Appearing on behalf of L&T, senior counsels Janak Dwarkadas and Abhishek Manu Singhvi told the bench both the technical and financial bids were submitted on 30 December 2024. They said MMRDA opened the technical bids on 1 January and began evaluating them, but L&T received no communication on the status of its bids. 

The company said MMRDA then proceeded to schedule the opening of financial bids for 13 May, even though the company hadn't received any information on the outcome of the technical bid evaluation. It said while it wasn't informed about the opening of financial bids, other bidders were intimated.

The company therefore approached the high court, seeking an urgent stay on the process. It argued that opening financial bids while excluding it from participation would violate the principles of a fair and transparent tender process and established legal norms.

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