SC rejects R-Infra plea on disqualification in road toll bid

The Supreme Court today dismissed a petition of Anil Ambani Group firm Reliance Infrastructure (R-Infra) against its disqualification from a Rs 2,100-crore contract for toll collection on five entry points in Mumbai.

A Bench comprising Justice Altamas Kabir and Justice Cyriac Joseph dismissed R-Infra's plea, challenging its rejection by the Maharashtra government on technical grounds.

R-Infra had approached the apex court against the orders of the Bombay High Court which, in October, had dismissed its plea against Maharashtra State Road Development Corporation (MSRDC). The company was disqualified, along with its consortium partner SKS, in the technical bid by MSRDC.

Last week, the apex court had declined to stay the High Court order. However, it said that the toll collected by the successful bidder -- MEP Toll Road Ltd, a toll management company -- would be kept in a separate account and would be subject to outcome of R-Infra's plea.

The High Court had observed that it "did not find any merit in the petition". It held that a bidder who fails to meet eligibility criteria cannot challenge the award of the contract on the ground that its financial bid was better.

Seven bidders had submitted technical and financial bids. Of these, GVK, Reliance-Infra (with Shakti Kumar Sancheti), Sadbhav Engineering (with PBA), Sangam India's joint venture were disqualified in technical round, while IL&FS, MEPL and Ashoka Builcon qualified.

R-Infra withdrew from the financial bidding, following its disqualification and also took back the earnest money deposit. It had quoted 11 years and one month as the concession period for collecting the toll from Mumbai's five entry points -— Mulund, Dahisar, Vashi, LBS Road and Airoli, as against 16 years and 22 months quoted by MEPL.

However, MEPL agreed to pay the entire contract amount of Rs 2,100 crore upfront to MSRDC within 90 days from the date of the letter of acceptance by the Corporation. It also agreed to reduce the concession period from 16 years, 22 months and 27 days to 16 years.