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Petition for stay on BMC bids for Mumbai road improvement dismissed

Wednesday, 26 February 2014 - 5:49pm IST | Agency: PTI

The Bombay High Court today refused to grant relief to a private company engaged in civil and allied works which had sought a stay on bids worth Rs 227 crores of the BMC for strengthening and improvement of roads in the city prior to the monsoons.

A division bench of Chief Justice Mohit Shah and Justice M S Sanklecha dismissed a petition filed by Shantinath Roadways, lead partner in SR-UIL joint venture company, challenging bid allotted by Brihanmumbai Municipal Corporation (BMC) to another company Relcon-R K Madhani. The petition alleged that the corporation was biased and showed favouritism and nepotism towards the other company and rejected the petitioner company's bid arbitrarily and in a malafide manner.

On January 1 this year, the BMC had floated tender for strengthening and improvement of various major roads in asphalt and mechanised mastic asphalt in the city for a period of 20 months. 

Only two bidders, the petitioner company and Relcon-R K Madhani - participated in the tender process. The petitioner company was directed by the civic body to reply on certain short falls. "The petitioner company complied and replied to the corporation and also submitted Rs one crore bank guarantee in favour of the civic body. Despite this compliance, the BMC on January 20 put up a notice that the petitioner company has been non-responsive for the tender for alleged non-compliance," the petition said.

On the same day, BMC opened the bids in favour of the other company.

Aggrieved by this, SR-UIL approached the High Court seeking a stay on the bid and for the petitioner's bid to be held responsive and considered. The High Court, after hearing arguments of both sides, opined that no favouritism has been shown by the civic body and dismissed the petition.

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