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Reliance Infra challenges MSRTC toll tender award

Reliance Infra challenges MSRTC toll tender award
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First Published: Tue, Nov 16 2010. 08 27 PM IST
Updated: Tue, Nov 16 2010. 08 27 PM IST
New Delhi: Reliance Infrastructure Ltd sought relief from the Supreme Court after it lost out in bid for a Mumbai toll tender issued by the Maharashtra State Road Transport Corporation Ltd.
Reliance came in appeal of a Bombay High Court order which said that the successful bidder, MEP Toll, would have to deposit Rs 2100 crore within 3 weeks. Reliance’s counsel, Mukul Rohtagi argued that MSRTC should not be allowed to accept the money from MEP Toll, as this would prejudice Reliance’s challenge of the tender award process.
MEP’s counsel Rohinton Nariman said that the money ought to be accepted by MSRTC as the interest burden on his client from bank loans was Rs. 69 lakh per day. The court has allowed MSRTC to accept MEP Toll’s funds, subject to the outcome of Reliance’s appeal, while specially directing the road transport corporation not to create equity with these funds which are to be held in a separate account.
nikhil.k@livemint.com
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First Published: Tue, Nov 16 2010. 08 27 PM IST