Bullet Train: Supreme Court sets aside Delhi High Court order to consider infra firm's bid for depot construction

The Supreme Court on Monday set aside a judgment of the Delhi High Court which had directed the National High Speed Rail Corporation Limited (NHSRCL) to consider the bid of infrastructure company Montecarlo Limited for construction and development of a depot in relation to the Mumbai-Ahmedabad bullet train project [NHSRCL v. Montecarlo Ltd]..A Bench of Justices MR Shah and AS Bopanna said that the project is of 'national importance,' and set aside the August 2021 verdict of the High Court. The NHSRCL had rejected Montecarlo's bid and awarded the contract to SCC-VRS(JV). Montecarlo had then approached the Delhi High Court contending that no reasons were assigned while rejecting the bid. .The top court held that the High Court ought to have appreciated that the Bullet Train Project is a result of long-drawn deliberations between the Government of India on the one hand and the Government of Japan on the other.It further observed that Japan has agreed to fund a huge amount for the project. “Such a huge sum/amount is funded by the developed nation to implement the project meant for development of the developing nation – the Republic of India. The contracts are entered into and the huge sum is funded on the basis of non-negotiated terms and conditions and therefore, the foreign developed nation, who has agreed to invest/fund such a huge amount is always justified in insisting for their own terms and conditions on which such a huge amount is funded,” the top court held.Importantly, Supreme Court has held that scope of judicial review in such foreign funded contract should be far much less than the ordinary Government funded contracts funded from Consolidated Fund of India."The scope of judicial review in such foreign funded contracts/projects would be restricted and minimal. In such foreign funded contracts, the only ground for judicial review ought to be on a limited aspect, i.e., the action of the executing authority does not suffer from favouritism or nepotism and based on the grounds which have been concealed from the foreign financing authority, if disclosed, would have persuaded the financing authority to cancel the contract," the Court said while dismissing the plea..The bullet train project was launched by Prime Minister Narendra Modi in 2017, in partnership with Japan. The project was expected to be completed by 2022 at an estimated cost of ₹1.10 lakh crore. It is reported that around 1,400 hectares of land will be acquired in Gujarat and Maharashtra for the project. Around 6,000 landowners will have to be compensated.In 2019, the Gujarat High Court had dismissed various petitions filed by farmers and landowners challenging land acquisition for the Mumbai-Ahmedabad bullet train project..[Read Judgment]