Supreme Court refuses to stay Adani Group's Dharavi redevelopment project

The Supreme Court on Friday (March 7) refused to grant an interim stay on the Dharavi Slum Rehabilitation project being carried out by the Adani Group, as sought by a company that lost out on the contract.

A bench of Chief Justice Sanjiv Khanna and Justice Sanjay Kumar sought responses from the Maharashtra government and Adani Properties Pvt Ltd, which was awarded the tender for the project, on a petition challenging a December 20, 2024 verdict of the Bombay High Court.

The high court had cleared the decks for redevelopment of the slums in Dharavi and upheld the tender awarded to the Adani Group for the project, ruling there was no “arbitrariness, unreasonableness or perversity” in the decision.

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Plea against tender to Adani rejected

The high court in the process dismissed the plea of UAE-based Seclink Technologies Corporation challenging the state government’s decision to award the mega redevelopment project to Adani Properties Pvt Ltd, which had made a Rs 5,069-crore offer.

Seclink Technologies Corporation emerged as the highest bidder for the project first in 2018 with its Rs 7,200-crore offer, but the tender was later scrapped by the government.

The Adani Group had emerged as the highest bidder for the 259-hectare Dharavi redevelopment project in the heart of Mumbai and bagged it with its Rs 5,069-crore offer in the 2022.

Subsequently, Seclink moved against the high court decision. While issuing notice on its plea, the bench directed Adani Properties Pvt Ltd to make payments for the project through a single bank account.

Tender process ‘unfairly scrapped’

Seclink, which lost the bid in 2022, argued that its initial ₹7,200 crore bid was higher and more deserving than Adani’s ₹5,069 crore offer.

The company alleged that the Maharashtra government unfairly scrapped the original tender process and issued a fresh one, tilting the competition in Adani’s favour. However, the Bombay High Court ruled that Seclink’s claims lacked merit. It rejected the argument that the revised tender conditions were designed to exclude Seclink and benefit Adani.

The Dharavi redevelopment initiative gained momentum in 2016 when the BJP-Shiv Sena government, led by then Chief Minister Devendra Fadnavis, prepared a detailed project report. In 2018, the administration approved a new project model, setting the stage for fresh bidding.

UAE firm made the highest bid in 2019

Seclink was initially declared the highest bidder in January 2019. However, in November 2020, the Maharashtra government scrapped the tender, citing modifications in project requirements.

In November 2022, Adani Properties won the redevelopment contract with a ₹5,069 crore bid, along with a mandatory ₹2,800 crore payment to the Railway Land Development Authority, bringing the total financial commitment to ₹7,869 crore—surpassing Seclink’s original bid.

Also read: Will scrap Dharavi tender if we form govt, Mumbai won’t become ‘Adani city’: Uddhav

Dissatisfied with the outcome, Seclink mounted a legal challenge in the Bombay High Court in 2023. The company reiterated that its ₹7,200 crore bid was higher and that the government’s decision to cancel the initial tender in 2020 was unfair and ultimately benefitted Adani.

Govt rejects reports of ‘undue favour’

The state government had claimed in the high court that the tender was awarded in a transparent manner without any undue favour to the highest bidder.

Dharavi, one of the world's densest urban sprawls, is a slum colony having a mix of residential and small industrial units.

(With agency inputs)