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HC dismisses R-Infra challenge to Mumbai toll contract

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BS Reporter Mumbai

The High Court here dismissed a petition from Reliance Infrastructure (R-Infra) challenging the award of a toll road project to Jayant Mhaiskar-owned Mumbai Entry Point Ltd (MEPL).

R-Infra was a bidder for the toll collection contract, at the five entry points to Mumbai. Its bid was rejected by Maharashtra State Road Development Corporation (MSRDC).

A verdict delivered by D Y Chandrachud said MSRDC was justified in coming to the conclusion that the bid did not meet the eligibility criteria. R-Infra’s counsel had argued that if MSRDC had opened the company’s financial bid, they would have found the terms more favourable than that of MEPL. The court rejected the argument.

 

“A bidder who does not meet the eligibility criteria cannot complain of the award of the contract on the ground that its financial bid had better terms,” the judgement said. MSRDC said the bid from R-Infra and its consortium partner, SMS Infrastructure, did not fulfil the conditions required in terms of experience in executing toll road projects, as well as in terms of toll revenue earned. SMS Infrastructure, however, was not a party to this petition.

The contract was awarded to MEPL in September and gives it the right to collect toll at Airoli, Vashi, Mulund, LBS Marg and Dahisar.

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First Published: Oct 30 2010 | 12:48 AM IST

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