Mega Setback for Megha Engineering in Mumbai Coastal Project

Whichever the Government, the Tender Goes to Megha Whether it's the previous Jagan government or the current Chandrababu government in Andhra Pradesh, the situation remains the same—any government project tender invariably goes to Megha Engineering Company. The scenario is no different in Telangana either. During its ten-year rule, the BRS government awarded numerous contracts to this company. Now, the Revanth Reddy government is also seemingly favoring Megha. Revanth Reddy, who made many statements against this very company while in the opposition, is now choosing to remain silent. He is even facing criticism for allegedly awarding massive contracts to the company. Megha Engineering, which has been enjoying dominance across the country, has now suffered a major setback. The Mumbai Metropolitan Region Development Authority (MMRDA) had issued tenders, and Megha won two of those projects, together valued at a staggering ₹14,000 crores.

Here's the twist: the engineering giant Larsen & Toubro (L&T), which has handled several complex domestic and international projects, also submitted a bid for the same work. However, without citing any reason, MMRDA disqualified L&T during the technical bid stage itself. Though L&T approached the Mumbai High Court, it didn’t receive relief, prompting the company to move to the Supreme Court. Chief Justice Gavai expressed surprise that a company like L&T was disqualified at the technical bid stage. He asked the representatives appearing for MMRDA whether they wanted to cancel the tenders or seek a stay, instructing them to consult the government and respond. Arguments on the matter were heard on May 26 and May 29. On Friday, senior advocate Mukul Rohatgi informed the bench—comprising Chief Justice Gavai, Justice A.G. Masih, and Justice A.S. Chandurkar—that both tenders had been cancelled. Megha Engineering, based in Hyderabad, had been declared the L1 (lowest bidder) for these tenders. With this cancellation, Megha loses projects worth ₹14,000 crores.

The tenders had been issued as part of the Mumbai Coastal Road Project expansion, which included a five-kilometer twin tunnel project estimated at ₹8,000 crores and an elevated creek road bridge estimated at ₹6,000 crores. However, L&T claims it submitted a combined bid for both projects that was ₹3,130 crores lower than Megha’s L1 bid. Though reasons were cited to justify the disqualification of L&T, with Supreme Court intervention, the tenders were entirely canceled. The Court remarked that if the tenders were not scrapped, they would review the full merits, including all relevant clauses, considering the wider public interest. As a result, it is said that the Maharashtra government was forced to step back.