Mumbai: Adani group asked to produce proof of financial capacity to get LOI for Dharavi slum redevelopment project

If the Adani group can’t fulfil requirements mentioned in the Dharavi redevelopment tender, it won’t receive the letter of intent (LOI) from the state government. Deputy Chief Minister Devendra Fadnvais said this in the State Assembly on Tuesday in reply to Varsha Gaikwad, who is Congress MLA from Dharavi.

Tendering process was fair

Fadnavis said the conglomerate would have to show a certain bank balance and a bank guarantee before getting the LOI. He said the entire tender process was transparent with the state inviting global tenders, with three evincing interest. The response of one of them, though, was inadequate and the project was awarded to the highest bidder. 

On Feb 26, the Bombay High Court, too, said that the tendering process for the Dharavi slum redevelopment project was “fair, transparent and in the larger public interest” after a plea challenged the conditions of the  tender that was awarded to the Adani group.

Their home is their only asset

Raising the issue again in the Assembly, Gaikwad said that there are one lakh houses, shops and factories in the Dharavi area. “People who reside here have only one asset, that is their home,” she said, alleging that the Eknath Shinde-Fadnvais government cancelled the old tenders and invited new ones with significant changes to favour one firm.

Hindenburg report may result in a delay

Gaikwad said that the Adani group is facing financial trouble since the Hindenburg report, and this can result in a delay. “The people of Dharavi are anxious and some of them may approach the high court,” she said, requesting the government to not issue the LOI to Adani.     

Fadnavis said, “As of now, the LOI hasn’t been issued to any firm as the government hasn’t yet received feedback from all departments concerned, especially the Urban Development Department.” He added that the tender has been designed in such a way that the winning company has to show its financial prowess and bank guarantee to the government.