# Companies allege restrictive eligibility norms curtailed competition, seek independent probe and warn of potential revenue loss exceeding ₹500 crore
M/s Skylark Infra Engineering Pvt. Ltd. and Sri Sai Enterprises and Developers Pvt. Ltd., participants in the Municipal Corporation of Delhi’s (MCD) tender for implementation of the Multi-Lane Free Flow (MLFF) System at 154 Delhi border entry points, have submitted separate representations to Delhi Chief Minister Rekha Gupta, urging the government to suspend the tender process until the Delhi High Court delivers its verdict in the matter.
The companies have requested that no Letter of Award (LoA) be issued until the Delhi High Court pronounces its judgment in W.P.(C) No. 8368 of 2026, where the validity of the tender’s eligibility criteria has been challenged. According to the representations, the case has already been heard in full and the judgment has been reserved.
In their submissions, the companies have raised concerns over what they describe as restrictive eligibility conditions that allegedly limited competition in the bidding process. They have also questioned the continuation of the procurement process while the matter remains under judicial consideration, stating that such a course could impact transparency, fairness and public confidence in the award of a high-value public contract.
According to the representations, the tender required bidders to demonstrate prior experience of operating 122 toll lanes under a single contract for a continuous period of two years. The companies contend that this condition resulted in only three technically qualified bidders nationwide, significantly narrowing competition. They further stated that a similar condition had been withdrawn by the MCD during an earlier procurement process after being found to be unnecessarily restrictive, despite there being no significant change in the scope of the present MLFF project.
The companies have also sought an independent inquiry by the Delhi Vigilance Department and the Central Vigilance Commission (CVC) into the formulation of the eligibility criteria as well as the overall procurement process. They have urged the authorities to examine whether the tender conditions were consistent with principles of fairness, transparency and competitive bidding.
Highlighting the financial implications, Skylark stated that its financial bid of ₹1,057.77 crore was substantially higher than the current H-1 bid of ₹963.99 crore, reflecting a difference of approximately ₹469 crore. The company has further claimed that a more competitive bidding process, facilitated by broader and non-restrictive eligibility norms, could have enabled the Municipal Corporation of Delhi to realise additional revenue exceeding ₹500 crore.
Reliefs Sought
The representations request the Delhi Government to:
* Suspend the MLFF tender process until the Delhi High Court delivers its judgment.
* Ensure that no Letter of Award is issued during the pendency of the matter.
* Order an independent inquiry by the Delhi Vigilance Department and the Central Vigilance Commission.
* Review the present tender and, if required, cancel and re-tender the project with fair, transparent and non-restrictive eligibility criteria.
* Take appropriate measures to promote maximum competition while safeguarding public interest and public revenue.
The companies stated that their representations are aimed at ensuring transparency, equal opportunity and fair competition in public procurement. They maintained that infrastructure projects involving substantial public funds should be awarded only through a procurement process that is open, competitive and consistent with constitutional and legal principles, while preserving public confidence in government contracting.