MMRDA To Give Another Go To Tender Bidding For Gaimukh-Bhayander Project
MMRDA has also made the strategic decision to reduce Rs 3,000 crore in the initially planned cost of the project, to make the venture more efficient economically.
The Gaimukh-Bhayander infrastructure project will see a re-run for its tender soon, in furtherance of public interest and more efficient use of public funds, as submitted by the Mumbai Metropolitan Region Development Authority to the Supreme Court.
The authority has also made the strategic decision to reduce Rs 3,000 crore in the initially planned cost of the project, to make the venture more efficient economically.
As per the press statement made by MMRDA, this decision has been taken not only on legal grounds but also on moral grounds. This stance taken by MMRDA is transparent, accountable, and saves public money, it further read.
In the matter at hand, Larsen & Toubro Ltd. approached the Bombay High Court on two occasions against the tender processes for the project, on the grounds that it was technically not correct and that it suffered from legal infirmities.
On both occasions, the Bombay High Court found the process to be legally and technically sound.
The dispute reached the Supreme Court, with L&T arguing that its financial bids were Rs 3,000 crore lower. However, the company was disqualified from the bidding process for failing to submit a required affidavit confirming that none of its bridge projects had collapsed within two years. As a result, its financial offer was not opened.
During the hearing, Justice BR Gavai of the Supreme Court dismissed L&T’s plea to overturn the High Court verdict, effectively endorsing MMRDA’s original bidding procedure.
At the same time, Solicitor General Tushar Mehta and former Attorney General Mukul Rohatgi informed the Court that, in light of the litigation, both existing bids would be cancelled, and a fresh tender would be issued.
