New Delhi: The Mumbai Metropolitan Region Development Authority (MMRDA) has decided to scrap the tender process for the construction of Thane-Ghodbunder to Bhayandar tunnel and elevated road projects in “public interest”, it informed the Supreme Court on Friday (May 30).

A bench of Chief Justie of India B.R. Gavai and A.G. Masih, along with newly-sworn in Justice Atul Chandurkar, was hearing the plea filed by Larsen & Toubro (L&T) accusing MMRDA of certain irregularities in the tender process for the projects collectively worth Rs 14,000 crore.

“We are scrapping the tender. Scrapped,” said senior advocate Mukul Rohatgi, representing the MMRDA.

The CJI, welcoming the decision, emphasised transparency. “We are in the era of transparency. We should appreciate SG Mehta and Mr Rohatgi,” Chief Justice Gavai said.

“It is fairly stated that the entire render process is scrapped in larger public interest. Thus the plea is disposed off as infructuous,” the court concluded, closing L&T’s plea.

The 5-km-long twin tunnel project connecting Thane-Ghodbunder and Bhayandar is estimated at Rs 8,000 crore, while the elevated road projects, a 9.8-km elevated creek road bridge, to connect Bhayandar with Ghodbunder Road in Thane, is estimated to cost Rs 6,000 crore. Both the projects are part of the extension of Mumbai Coastal Road project.

Larsen & Toubro (L&T) Ltd alleged procedural lapses and unfair treatment in the bidding for the Thane-Ghodbunder to Bhayandar infrastructure project. The company contested its “technical” disqualification from the bidding for the two projects, where Hyderabad-based Megha Engineering & Infrastructure Ltd (MEIL) emerged as the lowest (L1) bidder, even though its bid was reportedly at a substantially higher project cost compared to L&T’s.

Valued at Rs 67,500 crore, the Hyderabad-based Megha Engineering & Infrastructure Ltd (MEIL) came into limelight when its name came up as the second-highest purchaser of the now-unconstitutional electoral bonds, after Future Gaming and Hotel Services Pvt Ltd. Its biggest contribution was to the Bharatiya Janata Party – the party leading the Union government as well as the government in Maharashtra. Of the Rs 966 crore it donated in electoral bonds, Rs 584 crore (around 60%) went to the BJP. 

The top court had started hearing the petition on May 26 and issued a stern directive to the MMRDA, suggesting it re-tender the two infrastructure projects, or face a stay on the current process.

“The very name of the bidder, it’s difficult to believe, he has been chosen to construct the Central Vista by the Central government,” CJI Gavai had remarked, highlighting L&T’s established credentials.

“Take instructions on whether you are willing to re-tender. Otherwise we will stay,” the CJI told solicitor general Tushar Mehta and senior advocate Mukul Rohatgi, representing the MMRDA.

In Thursday’s hearing, senior advocate Abhishek Manu Singhvi, appearing for L&T, had highlighted that the company selected for the project lacked credentials and stressed that the process for selection was opaque.

According to a report by The Indian Express, MEIL had bought electoral bonds worth Rs 140 crore just a month before it bagged the Thane-Borivali twin tunnel project in May 2023, Rs 115 crore of which were redeemed by the BJP.

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