MMRDA scraps tender allegedly awarded to Megha Engineering for Mumbai projects after SC rap

Representing MMRDA, Senior Advocate Mukul Rohatgi informed the Supreme Court, "We are scrapping the tender."

Published May 31, 2025 | 11:49 AMUpdated May 31, 2025 | 11:49 AM

The Supreme Court of India

Synopsis: The Supreme Court closed L&T’s plea after MMRDA scrapped tenders for two major infrastructure projects worth ₹14,000 crore, citing public interest. L&T alleged unfair disqualification, despite offering a lower bid than Hyderabad- based Megha Engineering, which won both tenders. Notably, Megha Engineering is the second-largest electoral bond donor, contributing ₹966 crore—primarily to the BJP.

The Mumbai Metropolitan Region Development Authority (MMRDA) on Friday, 30 May, informed the Supreme Court that they have decided to scrap the earlier tender process allegedly awarded to Hyderabad- based Megha Engineering for the construction of the ₹8,000 crore Thane-Ghodbunder to Bhayandar road tunnel and ₹6,000 crore elevated road projects, in public interest.

According to Bar and Bench, the submission was made during the hearing of a plea by Larsen & Toubro (L&T), which alleged it was unfairly disqualified from the tender process at the financial bid stage without being informed of the result of its technical bid.

L & T according to The Wire report, had further alleged that they were disqualified from the bidding for the two projects, while the Megha Engineering & Infrastructure Ltd (MEIL) emerged as the lowest (L1) bidder, even though its bid was reportedly at a substantially higher project cost compared to L&T’s.

Supreme Court questions L & T’s exclusion

The Supreme Court had earlier questioned L&T’s exclusion, noting that the company played a crucial role in rescuing workers in Uttarakhand Tunnel collapse and was involved in major projects such as the Central Vista of Delhi.

Representing MMRDA, Senior Advocate Mukul Rohatgi informed the Supreme Court, “We are scrapping the tender,” the Bar and Bench reported.

Chief Justice Gavai commended MMRDA and its counsel for the decision, stating, “Yes, we are in the era of transparency. We should appreciate Solicitor General Tushar Mehta and Mr. Rohatgi.”

The court then closed L & T’s plea, noting, “It is fairly stated that the entire tender process is scrapped in the larger public interest. Accordingly, the plea is disposed of as infructuous.”

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Megha Engineering’s electoral bonds

It is to be noted that Megha Engineering is the second biggest electoral bond donor as per SBI’s records published by ECI under Supreme Court’s order.

The company, promoted by Pamireddy Pichi Reddy and PV Krishna Reddy, purchased bonds worth ₹966 crore, of which the highest donation went to BJP.

MEIL donated about ₹584 crore to BJP via electoral bonds. ₹195 crore was donated to BRS and ₹85 crore went to DMK. Others who encashed the electoral bonds donated by MEIL were YSRCP, TDP, Congress, Janta Dal (United), Janata Dal (Secular) and Jana Sena Party.

(Edited by Sumavarsha)

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