Dharavi redevelopment contract: SC seeks response from Maha govt, Adani

UAE-based SecLink Technologies had filed a plea challenging the state govt's decision to cancel its 2019 bid for the Dharavi redevelopment project and award the tender to Adani Properties in 2022

The Supreme Court (SC) on Friday sought responses from the Maharashtra government and Adani Properties on a plea challenging the award of the Dharavi slums redevelopment project to Adani.

 

The apex court, however, refused to halt the ongoing work at the project site after Adani Group said that the construction had already started and over 2,000 workers were involved in it. They also told the court that they had invested funds, procured construction equipment worth crores of rupees, and started the demolition of railway quarters on the site.

 

The plea, filed by a UAE-based firm SecLink Technologies, challenged the state government's decision to cancel SecLink's 2019 bid for the redevelopment of Dharavi slums and awarding the tender to Adani in 2022. SecLink Technologies Corporation (STC) is a UAE-based real estate and construction company.

 

After STC offered to improve its offer of ₹72,000 crore by 20 per cent, a Bench of Chief Justice of India Sanjiv Khanna and Justice Sanjay Kumar asked the company to file an affidavit stating this and scheduled the hearing for May 25. The court also said the project awarded to the Adani Group is 'subject to court orders'. 

 

The SC told Adani Group to channel all project-related payments through a single escrow account, with proper documentation, and to route all financial transactions related to the project through the designated account. 

 

In December 2024, the Bombay High Court had dismissed the petition filed by the UAE-based firm, saying that it 'lacked force'.

 

In November 2018, the Dharavi Redevelopment Project (DRP) tender was issued by the Maharashtra government, then headed by Devendra Fadnavis. A year later, the state government signed a memorandum of understanding (MoU) with the Indian Railways for the inclusion of 45 acres of Mahim-Matunga railway land. 

 

In March 2019, the chief executive officer (CEO) of DRP under the Slum Rehabilitation Authority (DRP/SRA) wrote a letter to the Seclink consortium stating that they are the preferred bidder in the case. In June 2019, the state sought the Advocate General’s (AG) opinion on whether the inclusion of railway land constitutes a material change to the tender conditions or not.

 

Responding to the query, Maharashtra’s AG Ashutosh Kumbhkoni had then said that the inclusion of railway land constitutes a material change in tender conditions and therefore there was a need to go for fresh bids.

 

Between August and October 2020, the state's Committee of Secretaries (CoS) accepted the AG’s recommendations and advised the Cabinet to cancel the 2018 tender. The cabinet headed by the then chief minister Uddhav Thackeray cancelled the tender, and in November 2020, the state government announced it would go for fresh bids for the project.

 

Subsequently, Seclink filed a writ petition before the Bombay HC challenging the state government's decision to cancel the tender.

 

In October 2022, the state government headed by Eknath Shinde issued a fresh tender for the DRP. Bids were opened, and Adani Properties Private Limited (APPL) was declared as the preferred bidder. In July 2023, the Maharashtra government issued APPL a Letter of Award.

 

In the same month, HC accepted Seclink’s plea for making APPL a party to its petition. After the Bombay High Court dismissed STC's plea, it approached SC. 

No status quo

 

Nov 2018: Dharavi Redevelopment Project (DRP) tender was issued by the Maharashtra government

Mar 2019: The chief executive officer of DRP under the Slum Rehabilitation Authority wrote a letter to the Seclink consortium stating that they are the preferred bidder in the case

Jun 2019: The state sought the Advocate General’s (AG) opinion on whether the inclusion of railway land constitutes a material change to the tender conditions

Aug-Oct 2020: The state’s Committee of Secretaries (CoS) accepted the AG’s recommendations and advised the cabinet to cancel the 2018 tender

Oct 2022: The state government issued a fresh tender for the DRP

Jul 2023: The Maharashtra government issued Adani Properties Private Limited a Letter of Award