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L&T files petition over alleged unclear bidding process for Thane-Mira Bhayander projects

#Taxation & Finance News#India#Maharashtra
Last Updated : 14th Oct, 2024
Synopsis

Larsen and Toubro Limited (L&T) has approached the Bombay High Court to contest the bidding process by the Mumbai Metropolitan Region Development Authority (MMRDA) for two major projects valued at INR 16,577 crore. L&T claims the Notice Inviting Tender lacked essential geotechnical data, making it impossible to prepare bids adequately. The firm argues that the rushed timeline is arbitrary, seeking relief for fair consideration in the tendering process.

According to recently published reports by the Express Group, Larsen and Toubro Limited (L&T) has approached the Bombay High Court to challenge the bidding process of the Mumbai Metropolitan Region Development Authority (MMRDA) concerning two significant projects valued at INR 16,577 crore. One of these projects aims to connect Thane and Mira Bhayander via a tunnel from Gaimukh to the Fountain Hotel junction at Shilphata, while the other involves constructing an elevated creek road bridge linking Bhayander to Ghodbunder Road in Thane.


The legal representatives of L&T filed the plea earlier this week, seeking urgent relief. They contended that the Notice Inviting Tender (NIT) issued by MMRDA lacked essential geotechnical data for the bridge, compelling bidders to gather this data through an amendment that was issued just two days before the tender submission deadline, which was initially set for October 3 and later extended to October 7.

L&T argued that, as a leading international infrastructure firm, collecting such data would require a minimum of 30 days. They claimed that the requirement to submit bids by October 7 without this crucial information was arbitrary and executed in haste, urging that bids be considered without the geotechnical details. Following a statement from Advocate General Birendra Saraf, assuring the court that bids would not be opened until 4:30 PM on October 8, the bench led by Chief Justice Devendra Kumar Upadhyaya decided to hear the pleas on the following day.

Senior advocates Abhishek Manu Singhvi and Zal Andhyarujina, representing L&T, argued before the bench that there had been a sudden shift in MMRDA's approach aimed at reducing competition or excluding certain bidders from the process. Singhvi noted that the bridge in question would be the second-largest after the Mumbai Trans Harbour Link (MTHL) bridge, known as Atal Setu, emphasising that there had been no urgency when the tender process began in July.

The firm indicated that the NIT issued on September 13 did not include any geotechnical data, and after inquiring about it on September 23, they still had not received the necessary information, prompting L&T to seek urgent relief as the revised submission deadline approached.

In a separate petition challenging the tender process for the tunnel project, senior advocate Janak Dwarkadas represented L&T and stated that while the company had submitted a bid, it did so under protest. He highlighted that gathering geotechnical data for such a large-scale project within a short timeframe was impractical and urged that bids be accepted without these details. Chief Justice Upadhyaya remarked that the requirement for providing this data would be contingent upon the outcome of the petition. The High Court is set to hear the plea soon.

In conclusion, L&T's legal challenge underscores concern about transparency and fairness in significant infrastructure projects. The outcome of this case could set important precedents for future bidding processes in the region.

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