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Maha: HC dismisses PIL on Bank Guarantee for Mumbai project

Maha: HC dismisses PIL on Bank Guarantee for Mumbai project

Mumbai, Mar 18 (UNI) The Bombay High Court on Tuesday dismissed a PIL seeking a CBI probe into alleged fraud bank guarantees accepted by the Mumbai Metropolitan Region Development Authority (MMRDA) from Megha Engineering and Infrastructure Ltd based on which the firm was awarded a Rs 16,600 crore contract for the Borivali-Thane underground twin tunnel project.

A division bench of Chief Justice Alok Aradhe and Justice Bharati Dangre held, “In view of preceding analysis, PIL is dismissed. However, there shall be no order as to costs.”

The public interest litigation (PIL) was filed by V Ravi Prakash, an resident of Hyderabad, who alleged that fraudulent bank guarantees were issued by a foreign entity, called Euro Exim Bank based in St Lucia and incorporated under the laws of England & Wales, and it was not a foreign bank recognised by the Reserve Bank of India (RBI).

The guarantees were issued on behalf of Megha Engineering and Infrastructure Ltd (MEIL) in favour of MMRDA.

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