Megha Engineering seeks dismissal of PIL in HC alleging ‘fraudulent’ bank guarantees for twin tunnel project

A bench of Chief Justice Alok Aradhe and Justice Bharati H Dangre was hearing a PIL by petitioner V Ravi Prakash argued through senior advocate Prashant Bhushan.

The PIL 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 recognized by the Reserve Bank of India (RBI).

Senior advocates Darius Khambata and Mukul Rohatgi representing MEIL sought dismissal of the plea and stated that the petitioner did not have locus (legal standing) to file the plea and it be dismissed and exemplary costs be imposed on the petitioner.

The MEIL in its interim application claimed that the project was being constructed in greater public interest to daily commuters and would reduce travel time from Thane to Borivali to 15 minutes from 1 hour 30 minutes.

The respondent company alleged that the petitioner has suppressed material facts regarding prior shareholder, civil and criminal disputes with MEIL and the same showed that the PIL is motivated and not genuine.

Solicitor General Tushar Mehta and Advocate General Birendra Saraf, representing MMRDA, opposed the PIL stating the nature of MEIL’s application was such that the court should decide its maintainability first before hearing it on merits.

The court granted time to Bhushan to file reply to MEIL’s application and posted further hearing to March 5.