S.B.Sinha, J. - (1.) LEAVE granted.
(2.) THE Mumbai Metropolitan Region Development Authority (for short, 'the Authority') was created under the Mumbai Metropolitan Region Development Authority Act, 1974 ('the Act'). It conceptualized the idea of establishing a Convention and Exhibition Centre ('CandEC). Pursuant thereto and in furtherance thereof it called for "Expression of Interest for development of CandEC" in Bandra Kurla Complex. An advertisement was issued inviting 'Expression of Interest for development of CandEC'. Appellant No.1, pursuant whereto and in furtherance whereof, entered into a Memorandum of Understanding (MoU) with M/s. Larsen and Toubro Ltd. (LandT) for setting up such a complex. It also conducted conference of investors therefor. It submitted its tender on 7.4.2003, highlighting: a) Entire ground of 75,000 sq.m. would be required for international standard CandEC. b) THEy have formed a consortium for bidding for the said project and giving the names of the members of the consortium as including LandT and IMAG (Germany). c) Letters of acceptance from LandT was also annexed to show its participation. d) THE Authority was offered equity participation to the extent of 5% of the total equity base. Several other companies also submitted their tenders. The tenders were to be considered at three stages and thus, three different covers were to be submitted along with tenders. The first cover contained compliance with minimum eligibility criteria, the second cover contained financial bid and the third one contained technical and business proposals. The technical bid was opened on 7.5.2003. The financial bid was thereafter opened which was contained in second cover, on 8.5.2003. Appellant was the highest bidder having offered 91.514 crores. M/s. Reliance Capitals Ltd. was said to be the lowest bidder therein. The offer of the bidders thereof are as under: 1. M/s. Shapurji Pallonji and Co. Ltd. Rs.50.005 Crores. 2. M/s. Reliance Capitals Ltd. Rs.13.032 Crores. 3. M/s. R.M. Bhuther and Co. Ltd. and its Associate companies in consortium with LandT Ltd. Rs. 91.514 Crores. D Cover thereof was openeD thereafter anD the Authority, on 26.6.2003 informeD Appellants that it haD DeciDeD to arrange a presentation on the business proposal by them on 3.7.2003. Pursuant thereto they maDe a presentation on 4.7.2003. Appellants, by a letter DateD 29.8.2003, informeD the Authority that: a) reputeD concerns like LanDT anD IMAG were associateD in the project. b) A presentation was maDe on 4th July, 2003, a copy whereof was encloseD. c) Thereafter it DiD not receive any query from the Authority. D) List of business partners shown with Details of Convention projects of LanDT anD business of IMAG. e) Role of IMAG was also set out.
(3.) THE Authority, however, took a decision to reject all the bids on 1.9.2003, which was said to have been communicated to Appellants by a fax message on 22.10.2003. Allegedly, the news item appeared in the 'Economic Times' on 2.10.2003, wherein, inter alia, it was reported that : a) THE Authority is close to finalizing the much talked about Convention centre in Bandra Kurla Complex. b) An official of the Authority had stated that they were trying to get private participation and three bidders had been finalized and in a few days the plans for the Centre would be finalized in an area of 5.5 hectares. Appellant issued a letter to the Chairman of the Authority, in terms whereof he was, inter alia, informed that the project would start getting yield only after 12 years from the date of commencement thereof. It was furthermore informed that its consortium members included LandT and IMAG. It was contended: i) The company has offered highest bid price for the land at BKC for a reserved plot for CandEC since the company is interested in bringing up an international standard Exhibition Centre, a long over-due infrastructure asset for a city like Mumbai inspite of reserved plot (restricted utility) area with high gestation period and longest break even which is almost about 7 years. In all, the project starts getting yield only after 12 years from date of commencement of construction. (ii) It has also been the contention of the company to relocate the asset base of the company on account of core competency of the company in the field for more than 50 years and intending to continue to command on industry. iii) As per the press release for a commercial block bidding invited by the Authority, it was awarded at Rs.25,000/- per square metre in spite of having a total flexibility to exploit the commercial aspect vis--vis an offer given by the company for the reserved plot for convention centre at the rate of Rs.14,642/- per square metre. iv) Company also expressed that the projects of such type are always being given land at very concessional rate. Statistics indicates that world over such exhibition centres are either funded by way of concessional land price or absolute government contribution by way of land to make the project to early break even. ;