Key Points

The authority emphasized that the move was voluntary and aimed at upholding transparency, despite having received legal vindication from the courts.

In a submission before the Supreme Court on Friday, MMRDA said that it would scrap both tenders and initiate a fresh bidding process in alignment with its institutional commitment to transparency and to safeguard the larger public interest.

“The decision to re-tender the Ghodbunder-Bhayandar infrastructure projects underscores MMRDA’s commitment to public value, ethical governance, and transparency,” the authority said in a statement.

“This voluntary step comes despite the Supreme Court declining to interfere with the Bombay High Court’s rulings, which had upheld the legality and procedural soundness of the tender process for the Gaimukh-Bhayandar project,” it added.

MMRDA also said it was actively considering a downward revision of the project’s base cost by around Rs 3,000 crore, based on price quotations revealed during court proceedings, to ensure optimal utilization of public funds.

Infrastructure major Larsen & Toubro (L&T) had twice challenged the tendering process in the Bombay High Court, which on both occasions upheld MMRDA’s procedures, affirming that all rules, technical criteria, and eligibility norms had been followed.

In its Special Leave Petition (SLP) before the Supreme Court, L&T had sought both interim and final reliefs, including a stay on the High Court’s order, a freeze on the opening of financial bids, a bar on disclosure of submitted bids, and a halt on issuing any Letter of Award.

However, the apex court declined to grant any of these interim requests.

“The Court did not stay the High Court’s order, nor did it restrain MMRDA from opening financial bids, disclosing them, or issuing Letters of Award,” the MMRDA statement said.

“During final hearings, Chief Justice B.R. Gavai expressly refused to interfere with the Bombay High Court's rulings, thus reinforcing the legality of MMRDA’s tendering process.”

According to MMRDA, L&T was disqualified for failing to meet a key eligibility condition that required bidders to declare that no bridge or barrage constructed by them had collapsed within two years of completion.

Based on L&T’s own disclosure, the company was rendered ineligible, and its financial bid was never opened.

“MMRDA’s approach in this matter goes beyond a legal win. It reflects leadership -- where legal compliance is a baseline, and ethical decision-making in public interest is the standard,” the statement said.

- IANS