Anil Ambani Group firm Reliance Infrastructure (R-Infra) has approached the Supreme Court against its disqualification from MSRDC's Rs 2,100-crore contract for toll collection on five entry points of Mumbai.
R-Infra petition was heard by a Bench comprising Justices Altamas Kabir and Cyriac Joseph, which declined ADAG firm's plea to stay the order of the Bombay High Court and posted the matter on November 25 for next hearing.
However, the court further said that the toll collected by the succesful bidder MEP Toll Road, a toll management company, would be kept in a seperate account and would be subject to outcome of R-Infra's plea.
"The interim order passed by the High Court would continue... MSRDC would be at liberty to accept the amount charged by MEP Toll. It would keep it into a seperate account and such account would be subject to final outcome of the this petition," the Bench said.
The apex court's direction came while hearing R-Infra's plea challenging High Court's order, which had in October, 2010 dismissed its petiton challenging its disqualification by Maharashtra State Road Development Corporation (MSRDC).
R-Infra was disqualified along with its consortium partner SKS in the technical bid by MSRDC.
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During the proceedings, counsels appearing for ADAG firm requested the apex court to stay the order of the High Court till November 22, when the main matter challenging the High Court's order was to be heard here.
However, this was opposed by the succesfull bidders and submitted that they have already taken a loan of Rs 2,100 from Infrastructure Development Finance Company (IDFC) and Canara Bank. They further contended that they have to pay interest of Rs 69 lakhs per day.
This was also supported by Solicitor General Gopal Subramanium appearing for IDFC.
Earlier, the High Court had dismissed R-Infra's petition after observing "it did not find any merit in the petition". It further held that a bidder, who does not meet eligibility criteria, cannot complain of the award of the contract on the ground that its financial bid offers better terms.
Seven bidders had submitted their technical and financial bids. Of these, GVK, Reliance-Infra (with Shakti Kumar Sancheti), Sadbhav Engineering (with PBA), Sangam India Limited Joint Venture were disqualified in technical bids, while IL&FS, MEPL and Ashoka Builcon were qualified.
R-Infra withdrew from financial bidding, following its disqualification and also took back the earnest money deposit. R-Infra 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.
Meanwhile, MEPL has 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 and has also agreed to reduce their concession period from 16 years 22 months and 27 days to 16 years.