Supreme Court Closes L&T's Plea as MMRDA Scraps ₹14,000 Crore Tender, Fresh Bidding Likely

The Supreme Court closed engineering major Larsen & Toubro's (L&T) plea against its disqualification from a ₹14,000 crore infrastructure tender after the Mumbai Metropolitan Region Development Authority (MMRDA) announced it was scrapping the entire tender process. This development clears the way for a fresh round of bidding, giving all parties, including L&T, a renewed opportunity to participate.

MMRDA, through its senior advocate Mukul Rohatgi, informed the apex court of its decision to cancel the ongoing tender process. The court, led by Chief Justice B.R. Gavai, accepted the statement, declaring the matter closed and the plea infructuous.

The court noted that the entire tender process had been scrapped in the larger public interest and subsequently closed the matter, considering L&T’s petition no longer relevant.

The tender covered two significant infrastructure projects valued at ₹6,000 crore and ₹8,000 crore, respectively. One of the planned bridges under the projects is expected to be Maharashtra’s second-largest, after the Mumbai Trans Harbour Link, or Atal Setu.

Background of the Dispute

L&T approached the Supreme Court after being disqualified from bidding for a key infrastructure project connecting Thane-Ghodbunder and Bhayander. The company raised concerns over alleged procedural lapses and lack of transparency in the evaluation process.

L&T claimed that its financial bid, reportedly ₹3,000 crore lower than competitors’, was not even opened. The company stated it submitted its financial proposal on December 30, while technical bids were opened on January 1. According to L&T, there was no communication from MMRDA on the status of its bid before financial proposals were opened on May 13—without the company being notified or invited to witness the opening process.

The issue drew further scrutiny during court proceedings. On May 29, the Supreme Court questioned L&T’s disqualification, with Chief Justice Gavai referencing L&T’s involvement in large national projects like Delhi’s Central Vista and drawing comparisons to recent infrastructure failures elsewhere.

The Chief Justice referenced the Uttarakhand tunnel collapse incident—where 40 workers were trapped and later rescued—to question the rationale behind disqualifying L&T, while raising concerns over the transparency of the bidding process and the qualifications of the selected contractor.

MMRDA's Justification

MMRDA defended its decision by citing L&T’s failure to submit a mandatory affidavit. According to the authority, tender participants were required to declare that no bridge constructed by them had collapsed within two years of completion. This affidavit was deemed a critical eligibility requirement, and MMRDA argued that L&T’s omission rendered its bid non-compliant.

Although MMRDA insisted that the evaluation process was fair, it sought 24 hours to deliberate further. The court allowed this request, scheduling the final hearing for May 30. However, MMRDA opted instead to scrap the tender entirely.

An MMRDA spokesperson confirmed the decision and indicated plans to initiate a re-tendering process. “MMRDA has voluntarily decided to proceed with a re-tendering process, without prejudice to its legal rights,” the spokesperson stated.

Additionally, MMRDA is considering a downward revision of the base project cost by approximately ₹3,000 crore. This potential revision is aimed at improving cost-efficiency and delivering higher public value.

Legal Journey

L&T initially approached the Bombay High Court, which dismissed its plea on May 20 but directed that the company’s electronically submitted bids be preserved in a sealed cover for two weeks. This allowed L&T time to approach the Supreme Court, which then took up the matter on an urgent basis.

The High Court had also instructed MMRDA to follow proper procedures in communicating its decision regarding the tender award to bidders, adding another layer of procedural scrutiny to the case.

With the Supreme Court’s order, all bids submitted under the now-scrapped process stand void. MMRDA will have to reinitiate the bidding process for the two major projects, creating fresh opportunity for L&T and other eligible contractors to compete.

The projects themselves remain critical to Mumbai’s infrastructure roadmap. The ₹6,000 crore elevated road and ₹8,000 crore tunnel are expected to significantly reduce travel time between Mumbai’s suburban and central areas. The scale and complexity of these developments make them key components of the region’s long-term urban mobility plans.

While the cancellation does not assure L&T a contract, the new process is expected to offer a more level playing field. The case also highlights the growing importance of transparency, qualification standards, and procedural rigor in India’s high-value infrastructure projects.