Supreme Court Ruling
In a landmark legal victory in the redevelopment project of Dharavi, India’s Supreme Court on Friday ruled that there will be no stay on the ongoing project by Adani Group.
This ruling comes after Dubai-based Seclink Technologies Corp moved a plea challenging the Maharashtra government’s decision to award the project—Asia’s largest urban rehabilitation project—to Adani Properties.
The Supreme Court has sent notices to all interested parties involved, such as Adani Properties, the Maharashtra state government, and Seclink Technologies, which is challenging the allotment of the project.
Legal Battle Over Dharavi Redevelopment
Seclink Technologies had previously moved against the decision of the Maharashtra government in the Bombay High Court, stating that its offer was better than that of Adani. In December 2024, however, the High Court rejected the plea, underlining that the government could consider and decide upon the most appropriate offer for such high-scale projects.
In the latest Supreme Court proceedings, the bench led by Chief Justice Sanjiv Khanna sought confirmation from Seclink that its bid of Rs 8,640 crore was significantly higher than Adani’s winning bid of Rs 5,069 crore. However, the court specified that Seclink must comply with all obligations set for Adani, including:
A Rs 1,000 crore lease payment to the Railways
A Rs 2,800 crore indemnity payment
Construction of 812 railway quarters
In order to provide financial transparency, the Supreme Court ordered Adani Group to keep a separate bank account for all credits and disbursements associated with the project, since demolition and construction work has already begun.
“Appropriate accounting records, including invoices as under the Income Tax Act and rules framed thereunder, should be kept,” said the court, adding that the award of the project is subject to the ultimate judgment of the appeal pending before it. The court also ordered that all the files relating to the project be submitted for examination, fixing May 25, 2025, as the date for the next hearing.
Seclink Technologies had also earlier contended that it was the highest bidder according to the initial tender that was issued in 2018. The court, however, explained that it is not an appellate body for disputes relating to tenders and that the evaluation of bids is within the domain of the government.
Additionally, the Bombay High Court had pointed out that Seclink, being just one of eight members of the consortium in the original bidding process, did not have the standing to challenge the cancellation of the tender on its own. The court also highlighted the fact that all issues about the amended tender conditions should have been brought forward prior to the financial bid opening.
Comprehending the Dharavi Redevelopment Project
Adani Properties, which is the property development business of the Adani Group, was successful in bagging the contract for the redevelopment of Dharavi in November 2022 by purchasing an 80% share in Dharavi Redevelopment Project Pvt Ltd, leaving the remaining 20% stake with the government of Maharashtra.
Stretches across 600 acres, the development will redevelop 296 acres but retain critical green belts like Mahim Nature Park. Dharavi is a densely populated Mumbai locality that is home to more than 850,000 permanent residents and over 1 million people including migrant workers. The most populous Mumbai locality with a record population density of 354,167 people per sq km, Dharavi has been a slum for decades.
The project is well placed close to Bandra Kurla Complex (BKC), the financial hub of Mumbai, with principal banks, stock exchanges, financial regulators, and corporate offices. As covered by one of the best free news sites, the redevelopment plan will enhance the infrastructural facility of Dharavi and solve the housing and sanitation issues for its large population.
