L&T Shares in Focus as Bombay High Court Dismisses Plea in MMRDA Twin Road Projects Bid Process

The Bombay High Court recently dismissed Larsen & Toubro’s (L&T) petitions challenging the Mumbai Metropolitan Region Development Authority’s (MMRDA) decision to open financial bids for two major infrastructure projects—the Thane-Ghodbunder to Bhayandar tunnel and the elevated road project. 

These projects are crucial components of Mumbai’s ambitious coastal road expansion plan, aimed at easing traffic congestion and improving connectivity between the northern suburbs and the city’s central and southern parts.

Background of the Dispute

L&T had filed separate petitions questioning the transparency and fairness of the bid process after it allegedly did not receive updates on the status of its bids, while other bidders did. The two tenders, floated by MMRDA last year, involve:

• The design and construction of an elevated road from Fountain Hotel Junction at Thane-Ghodbunder Road to Bhayander, estimated at around ₹6,000 crore.
• The design and construction of an underground road tunnel from Gaimukh to Fountain Hotel Junction, estimated to cost approximately ₹8,000 crore.

L&T’s contention was that it was not kept informed about the progress and technical evaluation of its bids, raising concerns about procedural fairness.

Court’s Verdict and Implications

The division bench, comprising Justices Kamal R Khata and Arif S Doctor, rejected L&T’s petitions and allowed MMRDA to proceed with the opening of financial bids. However, the court ordered that L&T’s price bids be sealed and preserved for two weeks, giving the company a window to appeal to the Supreme Court if it wishes.

The ruling underscored the importance of adhering to due process in public infrastructure projects while balancing transparency with the need for efficient execution. The MMRDA defended its actions by stating it was not obligated to inform L&T that its technical bids were found unresponsive before opening the financial bids, citing public interest as a key factor.

Significance of the Projects

These infrastructure projects represent the final phase of Mumbai’s coastal road development, aimed at reducing traffic bottlenecks and significantly cutting travel times. Notably, the proposed elevated road bridge is expected to be the second largest after the Mumbai Trans Harbour Link (MTHL), also known as Atal Setu.

Successful completion of these projects will enhance Mumbai’s urban transport network, promote smoother traffic flow, and contribute to the city's long-term economic growth.

Read More: L&T Wins Large EPC Orders for Govt Projects in Delhi & Andhra Pradesh.

Conclusion

While L&T retains the option to appeal to the Supreme Court, the court’s ruling emphasises the need for a balanced approach between transparency and timely execution in large-scale public projects. Investors and stakeholders will continue to closely monitor developments, given the strategic importance of these initiatives in the region’s infrastructure roadmap.

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