The Supreme Court of India decided on Friday that the Adani Group’s Dharavi redevelopment project will proceed without a stay, marking a significant legal breakthrough. The ruling follows a lawsuit filed by Dubai-based Seclink Technologies Corp, which contested the Maharashtra government’s choice to award the project to Adani Properties, which was hailed as Asia’s largest urban rehabilitation project.
The Supreme Court has issued notices to all key stakeholders, including Adani Properties, the Maharashtra government, and Seclink Technologies. The bench, led by Chief Justice Sanjiv Khanna, asked Seclink to substantiate its claim that its bid of Rs 8,640 crore was significantly higher than Adani’s Rs 5,069 crore bid. However, the court clarified that if Seclink were to be considered, it would have to honor all commitments made by Adani, such as a Rs 1,000 crore lease payment to the Railways, a Rs 2,800 crore indemnity payment, and the construction of 812 railway quarters.
With the Adani Group already initiating demolition and construction, the top court directed the company to maintain a separate bank account for all financial transactions related to the project. “Proper accounts, including invoices as required by the Income Tax Act and Rules, shall be maintained,” the Supreme Court stated, emphasising that no special equity would be claimed. The court also ordered that all project-related files be submitted for review. The next hearing is scheduled for May 25, 2025.
According to the first 2018 tender, Seclink Technologies had previously claimed to be the highest bidder. The court reaffirmed, nevertheless, that it does not have the authority to decide tender disputes; instead, the government makes these choices. Being only one of eight consortium participants in the original bidding procedure, the High Court had previously decided that Seclink lacked the legal capacity to contest the tender cancellation on its own.
Adani Properties secured the Dharavi redevelopment contract in November 2022, obtaining an 80% stake in the Dharavi Redevelopment Project Pvt Ltd, while the Maharashtra government retained the remaining 20%. The project covers 600 acres, with redevelopment planned for 296 acres while preserving key open spaces like Mahim Nature Park.
Over 850,000 people live in Dharavi, one of the most densely populated slums in the world, and the number of migrant workers there exceeds one million. Dharavi continues to be Mumbai’s most congested neighbourhood, with an astounding population density of 354,167 per square kilometre. Its advantageous location close to Mumbai’s financial centre, Bandra Kurla Complex, emphasises the significance of the reconstruction project, which intends to change the neighbourhood while tackling its intricate socioeconomic issues.
Source: The Economic Times
