Why MMRDA Scrapped Rs 14,000 Crore Tenders — and How It Helps EPC Giant L&T

The Mumbai Metropolitan Region Development Authority (MMRDA) informed the Supreme Court on Friday that it is scrapping the entire tender process for two high-value infrastructure projects worth Rs 14,000 crore. The move follows a challenge by engineering giant Larsen & Toubro (L&T), which raised concerns over a lack of transparency.

On Friday, MMRDA — represented in court by Solicitor General Tushar Mehta and senior advocate Mukul Rohatgi — told the bench, “We are scrapping the tender.”

A Supreme Court bench led by Chief Justice B.R. Gavai accepted MMRDA’s decision and disposed of L&T’s plea.

“It is fairly stated that the entire tender process is scrapped in the larger public interest. Thus, the plea is disposed of as infructuous,” the court ordered, according to Mint.

Later, MMRDA said it had voluntarily decided to initiate a re-tendering process “without prejudice to its legal rights.”

“We are also considering a downward revision of the base project cost by approximately Rs 3,000 crore as a step towards ensuring financial efficiency and delivering greater public value,” a spokesperson for MMRDA said, as per the news portal.

What’s the contention over the projects?

The dispute revolves around two key infrastructure projects under Mumbai’s coastal road initiative — a road tunnel between Gaimukh and Fountain Hotel Junction, and an elevated road along the Thane-Ghodbunder corridor. Valued together at Rs 14,000 crore, the projects aim to significantly reduce travel time between the city’s suburbs and core areas.

L&T, a major bidder, challenged its disqualification, stating it was never informed of the decision and that its financial bid — reportedly Rs 3,000 crore lower than competitors — was never opened. The company submitted its financial bid on 30 December. MMRDA opened technical bids on 1 January and began evaluations but allegedly provided no updates to L&T.

Despite the lack of communication, MMRDA opened financial bids on 13 May without notifying or inviting L&T, while other bidders were informed and included.

Defending its move in court, MMRDA said L&T was disqualified for failing to submit a mandatory affidavit. The affidavit required bidders to declare that none of their bridges had collapsed within two years of completion — a critical eligibility criterion that MMRDA claims L&T did not fulfil.

On 29 May, the Supreme Court made scathing observations on the tender process, questioning how L&T — which built Delhi’s Central Vista — could be disqualified while other bidders were cleared.

“Just remember what happened in the Uttarakhand tunnel, where 40 workers were trapped and then rescued. L&T is disqualified, and the person who is selected… you know,” the Chief Justice remarked, raising concerns over the qualifications of the selected contractors.

Following this, MMRDA sought one day to reconsider the issue. The court granted the request and scheduled the next hearing for 30 May. However, before the hearing, MMRDA opted to cancel the entire tender process.

While the move does not guarantee L&T the contract, it gives the company another opportunity to participate in a fresh round of bidding. L&T’s shares rose 0.64% to Rs 3,676.80 apiece on the BSE on Friday.