In relief for L&T, SC accepts scrapping of MMRDA's ₹14,000 cr road tender

Supreme Court rules that cancelling the tender for Mumbai road projects serves public interest, paving way for fresh bids and ending L&T's legal challenge

The Supreme Court on Friday accepted the Mumbai Metropolitan Region Development Authority’s (MMRDA) decision to cancel the tender process for two high-value infrastructure projects worth ₹14,000 crore, stating that the move served the larger public interest, according to a report by The Economic Times.

 

A bench led by Justice JB Pardiwala disposed of engineering major Larsen & Toubro’s (L&T) plea as infructuous, effectively bringing an end to its legal challenge over alleged irregularities in the bidding process.

 

Tunnel, elevated road projects part of ₹14,000 cr coastal expansion

The projects include the construction of a road tunnel between Gaimukh and Fountain Hotel Junction and an elevated road along the Thane–Ghodbunder corridor, critical components of Mumbai’s coastal road expansion.

 

While the ruling does not grant L&T the contracts it was vying for, it opens the door for a fresh tendering process. All existing bids, including that of L&T, now stand void.

 

L&T challenged technical bid rejection citing lack of transparency

In July 2024, MMRDA had first invited bids for the mega infrastructure project, which included the ₹8,000 crore twin tunnel plan as part of a larger ₹14,000 crore project connecting Gaimukh to Bhayander.

 

The legal battle began after L&T raised concerns over a lack of transparency in the evaluation of its technical bid. The company submitted its bid on December 13, 2024, which was opened on January 1, 2025. However, it claimed it was never informed of the bid’s status nor invited to the opening of financial bids, unlike other participants.

 

L&T approached the Bombay High Court seeking a stay on the bid process, arguing the MMRDA had failed to follow principles of natural justice. The High Court, however, dismissed the plea on grounds that the projects were of significant public importance and delays would hinder progress. It did, however, allow L&T to challenge the rejection of its bid and the eventual contract award separately.

 

L&T escalated the matter to the Supreme Court. Earlier this week, a bench led by Chief Justice of India JB Pardiwala expressed concern over the alleged irregularities and asked the MMRDA to clarify its stance, warning that the Court could stay the process if transparency concerns weren’t addressed.

 

Following today’s verdict, L&T shares were trading at ₹3,669.35 on the BSE, up 0.39 per cent at 2:15 pm.