What do the SC's Stern Words to the MMRDA on Tendering Have to Do With Electoral Bonds?

New Delhi: The Supreme Court has issued a stern directive to the Mumbai Metropolitan Region Development Authority (MMRDA), suggesting it re-tender two major infrastructure projects collectively worth approximately Rs 14,000 crore, or face a stay on the current process.
The warning on May 26 came during a hearing on appeals by Larsen & Toubro (L&T) Ltd, which contested its technical disqualification from the bidding for the Mumbai Elevated Road Project and the Road Tunnel Project, where Hyderabad-based Megha Engineering & Infrastructure Ltd (MEIL) emerged as the lowest (L1) bidder.
Chief Justice of India B.R. Gavai, presiding over a two-judge bench also comprising Justice A.G. Masih, expressed surprise at L&T's exclusion. 'The very name of the bidder, it's difficult to believe, he has been chosen to construct the Central Vista by the Central government,' CJI Gavai remarked, highlighting L&T's established credentials.
He instructed Solicitor General Tushar Mehta and Senior Advocate Mukul Rohatgi, representing MMRDA, to 'take instructions on whether you are willing to re-tender. Otherwise we will stay.'
L&T has challenged two Bombay high court orders from May 20, which upheld MMRDA's decision not to communicate the reasons for technical disqualification before awarding the projects. L&T argued this was an arbitrary and non-transparent process, leading to MEIL being declared L1 at a substantially higher cost. L&T claimed its bid was approximately Rs 2,521 crore lower for the Road Tunnel Project (estimated at Rs 8,000 crore) and Rs 609 crore lower for the Elevated Road Project (estimated at Rs 6,000 crore) compared to MEIL.
During the hearing, CJI Gavai emphasised the public interest involved. When Rohatgi argued that 'question of money doesn't arise if you are disqualified,' the CJI countered, 'question of money also arises if it's a public interest matter…you better take instructions. The public money would be saved.'
He further stressed, 'We are in an era of transparency…if it's arbitrary, the person should have an opportunity to challenge.'
MMRDA's counsel maintained there were 'good reasons' for L&T's disqualification and that tender clauses allowed for reasons to be shared post-award to prevent delays from 'unnecessary challenges.' Rohatgi added, 'We will show the reasons for disqualification.'
Senior Advocate A.M. Singhvi, appearing for L&T, highlighted the significant cost difference and hinted at the profiles of other bidders, stating, 'Names of the other two left are more important than my name…Their names are very interesting.'
The controversy is amplified by the profile of MEIL.
The Hyderabad-based firm, valued at Rs 67,500 crore, has been a prominent purchaser of electoral bonds. Data released by the Election Commission of India revealed MEIL bought bonds worth Rs 966 crore, with around 60% (approximately Rs 584 crore) going to the Bharatiya Janata Party (BJP). The Megha group's total donations via electoral bonds, including through associated companies like Western UP Power Transmission Company Limited, SEPC Power, and Evey Trans Private Limited, amount to Rs 1,232 crore, making it one of the largest political donors in the country.
This extensive political funding, particularly to the party leading the Union government and in Maharashtra (where MMRDA operates), has cast a shadow on the tender process.
MEIL, founded by Pamireddy Pitchi Reddy in 1989 and now run by his nephew P.V. Krishna Reddy, has executed major projects, including the $14 billion Kaleshwaram Lift Irrigation Project in Telangana, which itself faced scrutiny from the Comptroller and Auditor General (CAG) for alleged irregularities. The company also secured the Zojila Tunnel project.
The Mumbai Elevated Road Project involves a 9.80 km bridge along Vasai Creek, while the Road Tunnel Project is for a 5-km twin tunnel system on Thane Ghodbunder Road. Both are extensions of the Mumbai Coastal Road project.
The Supreme Court has scheduled the next hearing for May 29, where MMRDA is expected to respond to the court's suggestion for a re-tender.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

India Today

an hour ago

• India Today

Iran rules out halting nuclear activities amid escalating conflict with Israel

Iranian President Masoud Pezeshkian said Saturday that Tehran will not halt its nuclear activities "under any circumstances," even as Israeli strikes target nuclear facilities and tensions between the two countries a phone call with French President Emmanuel Macron, Pezeshkian emphasized that Iran remains open to diplomatic engagement on its nuclear program, but ruled out any rollback of its nuclear are ready to discuss and cooperate to build confidence in the field of peaceful nuclear activities. However, we do not agree to reduce nuclear activities to zero under any circumstances,' he was quoted as saying by Iran's official IRNA news agency. The president reaffirmed Iran's right to pursue a civilian nuclear program, saying that such rights "cannot be taken away by threats or war." Israel has claimed that Tehran is on the brink of developing a nuclear weapon, a charge Iran firmly intensifying conflict has seen Israel and Iran exchange successive rounds of strikes since June 13, with Iran's nuclear sites reportedly hit in recent Israeli attacks. Pezeshkian warned that Iran's retaliation will escalate if Israeli operations continue. 'Our response to the continued aggression of the Zionist regime will be more devastating,' he figures vary widely. Iran's health ministry reported over 400 people killed and more than 3,000 wounded by Israeli strikes. Meanwhile, Iran's retaliatory attacks have killed at least 25 people in Israel, according to official Israeli sources. Independent rights groups estimate the toll in Iran may be even higher, with one US-based NGO citing over 650 deaths, including hundreds of efforts appear stalled. Talks held Friday in Geneva ended without progress. While European diplomats voiced hope for future dialogue, Iran's foreign minister insisted that Tehran would not negotiate under fire. 'Iran is ready to consider diplomacy once again, and once aggression is stopped and the aggressor is held accountable for the crimes committed,' he information inside Iran remains scarce. Internet watchdog reported another collapse in connectivity on Saturday amid a nationwide internet blackout that has persisted for several InMust Watch

Business Standard

an hour ago

• Business Standard

Net direct tax collection drops by 1.39% to Rs 4.58 trillion so far in FY26

Net direct tax collections till June 19 in the financial year 2025-26 (FY26) dipped by 1.39 per cent year-on-year to Rs 4.58 trillion, due to higher refunds, income tax relaxation provided to salaried individuals and the impact of increased capital expenditure by companies. Of this, non-corporate tax - which includes taxes paid by individuals, Hindu Undivided Families, firms, bodies of individuals, associations of persons, local authorities, and artificial juridical person - grew marginally by 0.71 per cent on yearly basis to Rs 2.72 trillion during the same period. Net corporate tax during the same period declined by 5.13 per cent to Rs 1.72 trillion, while securities transactions tax (STT) increased by 12.13 per cent to Rs 13,013 crore, according to the data. According to Samir Kanabar, tax partner with EY, the marginal dip in net tax collections is majorly due to tax relaxation given to salaried class in the Union Budget 2025. 'Since individuals are paying less tax, the government is receiving lower Tax Deducted at Source (TDS) from salaries. On the corporate side, the fall in tax collection is partly because companies are getting large refunds and also because many of them have made big Capex investments," said Kanabar. "When businesses spend on setting up factories, buying machinery, or expanding operations, they get tax deductions under the Income Tax Act, which reduces their taxable income and ultimately lowers the Corporate Income Tax they pay,' he added. Gross direct tax collections increased by 4.86 per cent year-on-year to Rs 5.45 trillion, while refunds rose significantly by 58.04 per cent to Rs 86,385 crore during the same period. Of the total refund, major chunk comprised of corporate refunds totalling Rs 76,832.08 crore which grew by 67.31 per cent. According to experts, this refund relates to past years which may have been cleared now. Of the total gross direct tax, corporate tax amounted to Rs 2.49 trillion, non-corporate tax contributed Rs 2.82 trillion , STT totalled Rs 13,013 crore and other taxes stood at Rs 259.61 crore. "The growth in corporate tax collections appears to be broadly in line with expected profit growth. In the case of non-corporates, collections may have been impacted by lower bonus payouts and modest salary increments. As for refunds, these likely pertain to previous assessment years and may simply reflect bunching of processing activity towards the end of the first quarter," said Madan Sabnavis, chief economist at Bank of Baroda. Meanwhile, advance tax collections registered a moderate growth of 3.87 per cent in the first quarter of FY26. This is in comparison to last year's year-on-year growth of 27.34 per cent. Advance tax is paid by individuals and businesses in four installments within specific dues dates - June 15, September 15, December 15 and March 15. The non-corporate advance tax decreased by 2.68 per cent on year to Rs 33,928.32 crore till June 19, in FY26, while corporate advance tax rose by 5.86 per cent to Rs 1.21 trillion during the same period. The Centre is estimated to collect Rs 25.2 trillion as direct taxes in FY26. Net direct tax collection in FY25 grew at 13.57 per cent to Rs 22.26 trillion, exceeding the initial budgeted target of Rs 22.07 trillion.

Time of India

an hour ago

• Time of India

Refunds, advance tax dip: Net direct mop-up down 1.4% to Rs 4.6 lakh crore

Representative Image NEW DELHI: Gross direct tax collections rose less than 5% to Rs 5,45,207 crore during the fiscal year up to June 19. The first of the four instalments of advance tax receipts increased at a muted 3.9%, raising fears of a sharp slowdown in the growth in corporate profits during the June quarter. On a net basis, direct tax collections were 1.4% lower at a little under Rs 4.6 lakh crore, but that was on account of a 58% jump in refunds, which added up to Rs 58,385 crore. The spike in refunds comes amidst finance minister Nirmala Sitharaman's clear missive to ensure that officials don't sit on refunds, a message she delivered to the indirect tax brass on Friday and which is likely to be reiterated to top income tax officials in the coming week. Typically, advance tax payments are seen as a barometer of corporate health with some individuals also required to pay. The changes in personal tax may have played a part too. "The revised tax slabs and reduced personal tax rates that came into effect from April 1, 2025, have provided relief to salaried individuals, and this is naturally reflected in lower TDS collections. On the corporate front, we're seeing the impact of increased capital expenditure by businesses. As companies invest in expansion and infrastructure, they benefit from higher depreciation claims, which temporarily lower taxable profits. This is a healthy sign of forward-looking investment behaviour," said Samir Kanabar, tax partner at consulting firm EY India. In recent months, industrial output has seen a slowdown although GST numbers have been steady. "Tax collections for recent quarter, while subdued, put spotlight on emerging macro trends posing challenges to earning growth for corporates andd non-corporates taxpayers for the financial year. Also, as many elements of current geopolitical scenario play out over next few months, impact of the developments would come to bear on the forecast for rest of year too," said Sumit Singhania, a partner at Deloitte India. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now