HC denies relief to L&T in dispute linked to mega infra project in Thane, OKs bid opening

Mumbai, May 20 (PTI) The Bombay High Court on Tuesday denied relief to construction giant Larsen & Toubro in a dispute over the Thane-Ghodbunder to Bhayandar tunnel and elevated road project as it gave a go-ahead for the opening of tender bids citing public importance of the venture.

A vacation bench of Justices Kamal Khata and Arif Doctor said it was not continuing its interim stay passed last week, restraining the Mumbai Metropolitan Region Development Authority (MMRDA) from opening the financial bids, which is the last stage of the tendering process.

The bench, in its order, pointed out that the Rs 6,000-crore project was vital for citizens and hence cannot be delayed any further.

"We are mindful that the said project is a mega-infrastructure project of significant public importance. Thus, any delay of the same would adversely impact the execution of the project," it observed.

The financial bids were earlier scheduled to be opened on May 13.

The bench noted that L&T can challenge rejection of its technical bid as well as the award of the contract.

"The rights of the petitioner (L&T) would remain intact, as opposed to the grave prejudice that would be caused in the case of any delay to the project," the HC contended.

The construction major had filed two petitions in the high court earlier this month, challenging the non-intimation of the status of its bid by the MMRDA for the project.

The bench on Tuesday rejected the petitions, but directed the state-run planning agency to keep the private company's price bids in a sealed cover for one week after the tender is opened.

"We are not continuing the earlier interim order of stay," the court asserted.

The bench, after perusing the terms and conditions of the tender, said it was of the prima facie view that the same are "opaque and such that could give rise to the tendering authority acting in an arbitrary and non-transparent manner." However, the company has accepted the terms of the tender by participating in the tendering process and has not challenged the same, the court remarked.

"In our view, it was incumbent on the petitioner to have challenged the terms of the tender before participating in the same," the HC said.

The construction giant, in its pleas, stated it was not intimated about the outcome of the technical bid process for the Rs 6,000 crore project, which includes a 9.8-km elevated road over Vasai Creek, touted as the second longest in the country after Mumbai's Atal Setu.

L&T submitted its technical and financial bids on December 30, 2024. The technical bids were opened on January 1, 2025, but the company claimed it received no communication thereafter.

It said the MMRDA's non-communication violated the principles of fairness and transparency in the tendering process.

Solicitor General Tushar Mehta and senior counsel Mukul Rohatgi, appearing for the MMRDA, had argued that as per the tender conditions, only responsive bidders would be intimated.

Since L&T's bid was found to be non-responsive, the state-run agency was under no obligation to communicate with the company, they aruged.

The MMRDA said it was open to unsuccessful bidders to challenge later after the lowest bidder is selected, and they would not be left remediless.

Rohatgi and Mehta maintained the project was large and in people's interest and could "brook no further delay". PTI SP ARU RSY