Supreme Court Questions Transparency In MMRDA's ₹6,000 Crore Tender After L&T Appeal On Thane-Bhayandar Tunnel & Elevated Road Project

Mumbai: The Supreme Court on Monday took a strong stance on transparency in public procurement while hearing an appeal by infrastructure giant Larsen & Toubro (L&T) against a Bombay High Court order that dismissed its plea related to a Rs 6,000-crore infrastructure project in Maharashtra.

The case concerns the Mumbai Metropolitan Region Development Authority’s (MMRDA) refusal to inform L&T about the status of its bid for two major infrastructure works — the Thane-Ghodbunder to Bhayandar tunnel and the elevated road project.

L&T claims it was never informed of its disqualification after submitting its technical and financial bids on December 30, 2024. The technical bids were opened on January 1, 2025, but the company received no communication thereafter.

A bench of Chief Justice BR Gavai and Justice Augustine George Masih expressed concern over the opacity in the bidding process. The bench asked the MMRDA’s counsels to seek instructions from authority on its position in this regard tremarking that the matter involves thousands of crores of public money.

“This is thousands of crores of public money. Please take instructions, else we will stay this order (of high court),” the CJI said, hinting at a possible interim stay if the process lacked transparency. “We are in the era of transparency. Anything arbitrary… the person must have an option to challenge it.”

Solicitor General Tushar Mehta, appearing for the MMRDA, defended the authority’s actions, stating, “We did not open their price bid. Now the appellant wants it opened.”

The construction giant contended that the company was never informed of its disqualification and learned about it only during the high court proceedings. The MMRDA, however, cited a Supreme Court precedent to argue that only “responsive bidders” are entitled to communication.

Earlier, the Bombay High Court had dismissed L&T’s petitions, emphasising that the projects were of “significant public importance” and refused to stay the opening of financial bids. It directed, however, that the price bids for the elevated road tender be preserved in a sealed cover for a week following the contract award. The court declined to extend similar protection for the Thane tunnel project.

Last week, the Supreme Court had adjourned the matter due to procedural lapses, including the petitioner’s failure to annex the High Court orders. The apex court had remarked, “There is nothing of extreme urgency,” and listed the case for hearing on May 26.

The Supreme Court has now listed the matter for further hearing on Thursday.