Supreme Court Upholds Dharavi Redevelopment Project
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Synopsis
The Supreme Court has decided not to intervene with the Bombay High Court's ruling on the Dharavi Redevelopment Project led by the Adani Group, allowing construction to proceed. The decision follows an appeal from Seclink Technologies to maintain status quo, which was also dismissed.
Key Takeaways
- The Supreme Court upheld the Bombay High Court's decision regarding the Dharavi Redevelopment Project.
- Seclink Technologies' plea for a status quo order was rejected.
- The project will include the development of a railway line.
- Adani Group has already made significant investments in the project.
- Dharavi redevelopment aims to modernize housing and infrastructure.
New Delhi, March 7 (NationPress) The Supreme Court, on Friday, opted not to interfere with the Bombay High Court's ‘justified’ ruling, thereby allowing the ongoing construction of the Dharavi Redevelopment Project (DRP) in Mumbai, spearheaded by the Adani Group. Chief Justice of India (CJI) Sanjiv Khanna and Justice P.V. Sanjay Kumar declined to reverse the High Court's December 2024 verdict favoring the Adani Group.
The apex court also rejected an oral request from UAE-based Seclink Technologies Corporation, which sought a status quo order on the project.
The bench, led by the CJI, remarked that the High Court's decision, which supported the tender awarded to Adani Properties Private Limited, was reasonable since the project will also encompass the development of a railway line.
Furthermore, the Supreme Court issued a notice to the Maharashtra government and Adani Properties regarding the petition filed by Seclink Technologies, which challenges the state government's decision to annul its 2019 bid for the Dharavi slums redevelopment and to issue a new tender in 2022 to Adani.
In December 2024, a division bench of the High Court, comprising Chief Justice D.K. Upadhyaya and Justice Amit Borkar, dismissed Seclink Technologies' petition, stating: “The grounds raised in the petition lack force and effort. The challenge to the government's action of cancelling the earlier tender and issuing a fresh tender award fails.”
On Friday, the Supreme Court reviewed Seclink’s appeal after the company proposed a 20% increase on its original offer of Rs 7,200 crore for the project.
The apex court instructed Seclink to submit an affidavit concerning its proposal and scheduled the matter for a hearing on May 25.
Senior Advocate Mukul Rohatgi, representing Adani, contended that equipment valued at hundreds of crores had already been procured by the company, prompting the apex court to mandate the maintenance of an escrow account for all payments.
The Adani Group emerged as the highest bidder for the 259-hectare Dharavi Redevelopment Project, winning it with a bid of Rs 5,069 crore in the 2022 tender process conducted by the state government.
In the initial tender issued in 2019, Seclink had been the highest bidder with an offer of Rs 7,200 crore. Subsequently, the Eknath Shinde government annulled the 2019 tender and released a new one in 2022 with additional stipulations. The state government decided to integrate 45 acres of railway land into the project for slum rehabilitation, a component absent from the original proposal.
Advocate General Ashutosh Kumbhakoni had advised the state government to issue a revised tender to reflect these changes and consider factors such as land acquisition costs.
Dharavi, recognized as one of the world's largest slums, spans over 2.8 sq km of valuable land near the central business district of Bandra-Kurla Complex. The Dharavi redevelopment plan envisions replacing existing informal settlements with modern housing, infrastructure, and commercial spaces.
