Relief to L&T: MMRDA scraps Rs 14,000-crore Thane-Bhayander tunnel project, SC told
ET Bureau May 30, 2025 11:40 PM
Synopsis

In a significant development, the MMRDA has decided to scrap the Rs 14,000-crore Thane-Ghodbunder to Bhayander tunnel and elevated road projects, a move communicated to the Supreme Court. This decision follows concerns raised by the court regarding the tender process, which led to L&T's disqualification.

In a relief to Larsen & Toubro, the Mumbai Metropolitan Region Development Authority (MMRDA) on Friday told the Supreme Court that it has decided to scrap the Rs 14,000-crore Thane-Ghodbunder to Bhayander tunnel and elevated road projects in the Mumbai Metropolitan Region.

L&T, India’s biggest engineering company by market capitalization, which was disqualified, had last week moved the SC seeking a stay on the opening of financial bids for the two infrastructure projects.

Senior counsel Mukul Rohatgi told a Bench led by Chief Justice BR Gavai that the entire tender process is being scrapped in the “larger public interest.”

Accepting the MMRDA’s stand, the CJI disposed of the L&T’s appeal as “infructuous."

The MMRDA had decided to scrap the tender after the Supreme Court had raised concerns over it.

On Monday, the CJI had wondered how L&T, which was chosen by the central government for the construction of the Central Vista project in the Capital, had failed to pass muster for the Mumbai projects. It had then asked the 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 had said.

The two mega infrastructure projects undertaken by MMRDA will link Thane and Mira-Bhayandar through five-km twin tunnels of 14.6 metres diameter from Gaimukh to Fountain Hotel junction at Shilphata. This project is worth Rs 8000 crore.

Another elevated creek road bridge of 9.8 km worth Rs 6,000 crore will connect Bhayandar to Ghodbunder Road in Thane. The proposed bridge would be the second-longest in the MMR, after the Mumbai Trans Harbour Link, also known as Atal Setu.

L&T, in its appeal, said it had not been informed about the status of its bids and it came to know about its disqualification only during the hearing of the petition on May 13. The company was one of the bidders for the project and had submitted its technical bid in December.

"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," the appeal stated.

According to the company, the MMRDA ought to have taken a 'fair' approach. The HC order “fails to set aside the unlawful and arbitrary tender process...despite coming to a categorical finding that the tender conditions were prima facie in breach of the guidelines issued by the Public Works Department, Maharashtra, as well as the Central Vigilance Commission," L&T said in its appeal filed through counsel Raunak Dhillon.

The HC order “fails to set aside the unlawful and arbitrary tender process...despite coming to a categorical finding that the tender conditions were prima facie in breach of the guidelines issued by the Public Works Department, Maharashtra, as well as the Central Vigilance Commission," Dhillon said.
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