Bombay High Court upholds Adani Properties’ Dharavi slum rehabilitation bid

The Bombay High Court has upheld the Maharashtra housing department’s award for the Dharavi slum rehabilitation project of Adani Properties Pvt. Ltd., dismissed a legal challenge from Dubai-based Seclink Technology Corp. The ruling clears the way for the entity promoted by Gautam Adani to lead the redevelopment of the 259-hectare slum in central Mumbai, one of Asia’s largest slums.

Seclink lost out to Adani in 2022 bid, arguing its $The Rs 7,200-crore offer is higher and more worthwhile than Adani’s offer $The bid was Rs 5,069 crore. It claimed that the state’s decision to cancel the earlier tender process and re-issue it was biased and violated the principles of natural justice.

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In its judgment, a division bench of Chief Justice Devendra Kumar Upadhyaya and Justice Amit Borkar held that the petition lacked merit. The court said challenges to the government’s actions, including the cancellation of previous tenders, were unfounded.

Detailed order is awaiting.

In 2016, the Devendra Fadnavis-led Bharatiya Janata Party-Shiv Sena government prepared a Detailed Project Report (DPR), Dharavi Reconstruction projects gain momentum. In 2018, the government approved a new model for the project, paving the way for bidding.

Seclink initially emerged as the highest bidder in January 2019. However, the Maharashtra government terminated the tender in November 2020 citing changes in project requirements.

In November 2022, Adani Properties signed a contract with a company for the redevelopment. $5,069 crore bid and additional $Mandatory payment of Rs 2,800 crore to Railway Land Development Authority (RLDA), bringing total commitment $7,869 crore – more than Seclink’s bid.

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Unsatisfied with the outcome, Seclink returned to the Bombay High Court in 2023 for a second legal challenge. The company previously claimed that the government unfairly rejected its bid despite being named the highest bidder in January 2019.

Seeklink believes that its $The higher bid of Rs 7,200 crore and the government’s decision to terminate the process in 2020 were biased, ultimately allowing Adani Properties to get the project.

The Slum Redevelopment Authority (SRA) countered that it issued a new tender in 2022 after a 45-acre parcel was identified in the project plan to replace the railway land. Adani met the requirements for this revised tender, but Selinke believes there are no significant differences between the original tender and the new tender as both include rail land.

The Maharashtra government defended the new tender, saying it was transparent and inclusive. Officials stressed that the revised terms involve the rehabilitation of around seven lakh ineligible slum dwellers – something that was not included in the original tender. They also pointed out that the new tender requirements $Rs 2,800 crore was paid to RLDA for inclusion of railway land in the project.

The government further argued that Seclink considered the revised conditions unfavorable and chose not to participate in the bidding process, instead making baseless allegations.

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The high court ruling effectively validates the government’s approach and clears the way for Adani Properties to move ahead with the urban renewal project, which has been hailed as a transformative initiative for Mumbai.

Seclink and Adani Properties have yet to respond Mintquery.