Supreme Court Allows Adani’s Dharavi Redevelopment Amid Legal Challenge
India’s Supreme Court has declined to impose a stay on the Dharavi redevelopment project awarded to the Adani Group, despite legal objections raised by Dubai-based Seclink Technologies Corp. The court has issued notices to Adani Properties, the Maharashtra government, and Seclink Technologies, requesting their responses to the ongoing dispute.
Background of the Dharavi Redevelopment Project
Dharavi, one of Asia’s largest slums located in Mumbai, has been the focus of redevelopment efforts aimed at transforming the area into a modern urban hub. In 2019, Seclink Technologies emerged as the highest bidder for the project with a bid of ₹7,200 crore, surpassing Adani’s ₹4,539 crore offer. However, the Maharashtra government later included an additional 45 acres of railway land into the project scope, leading to the cancellation of the initial tender and the issuance of a new one in 2022. In the revised bidding process, Adani Properties secured the project with a bid of ₹5,069 crore.
Seclink’s Legal Challenge
Seclink Technologies challenged the cancellation of the original tender and the subsequent awarding of the project to Adani Properties, alleging that the process was arbitrary and lacked transparency. The company claimed that the inclusion of the railway land had already been accounted for in its initial bid and that the re-tendering process unfairly favored Adani. Seclink sought legal recourse, first approaching the Bombay High Court.
Bombay High Court’s Decision
In December 2024, the Bombay High Court dismissed Seclink’s petition, stating that the government’s decision to cancel the 2019 tender and issue a fresh one in 2022 was justified. The court noted that the inclusion of additional land and changing economic conditions warranted a new tender to ensure the project’s financial viability. The court emphasized that no concluded contract existed with Seclink, and the government’s actions were neither arbitrary nor unreasonable.
Supreme Court’s Stance
Following the Bombay High Court’s decision, Seclink escalated the matter to the Supreme Court. The apex court declined to impose an immediate stay on the project but sought responses from Adani Properties and the Maharashtra government regarding Seclink’s allegations. The court also requested Seclink to substantiate its claim that its bid was substantially higher than Adani’s. The Supreme Court emphasized that the project’s continuation is subject to the final outcome of the case, indicating that while construction may proceed, it does so under legal scrutiny.
Current Status of the Redevelopment
Despite the ongoing legal proceedings, Adani Properties has commenced preliminary work on the Dharavi redevelopment project. The initiative aims to transform the 240-hectare slum into a modern urban area, providing improved living conditions for its residents. The project is expected to be completed over a seven-year period, with the goal of integrating Dharavi into Mumbai’s broader urban landscape.
The Supreme Court’s decision to allow the project to proceed, while legal challenges are addressed, underscores the judiciary’s effort to balance developmental objectives with due process. The final resolution of the dispute between Seclink Technologies and the Maharashtra government will have significant implications for large-scale urban redevelopment projects in India.
