Mumbai: The Supreme Court declined to impose a stay on the Dharavi Redevelopment Project, executed by the Adani Group on March 7. This decision followed a lawsuit filed by Dubai-based Seclink Technologies Corp., against the Maharashtra government, challenging the awarding of the project, which is the largest urban redevelopment initiative in Asia, to Adani. The court notified all significant parties involved, including the Maharashtra government and Adani Properties, as well as Seclink Technologies, which has been contesting the project allocation.
Previously, Seclink argued its bid of Rs 8,640 crore surpassed Adani's Rs 5,069 crore bid when appealing to the Bombay High Court. However, in December 2024, the High Court dismissed Seclink’s claims, reaffirming the governmental right to select bids. The Supreme Court's bench, led by Chief Justice Sanjiv Khanna, required Seclink to uphold all commitments made by Adani, including payments to the Railways and construction responsibilities.
Furthermore, despite ongoing construction, the court mandated that Adani Group maintain a separate bank account for all project-related transactions and adhere to the Income Tax Act and relevant regulations. The ruling clarified that no special equity claims would be entertained and maintained that the final project award was subject to the appeal outcome. Additionally, the court instructed the submission of all project-related documents for review, with the next hearing scheduled for May 25, 2025.
The Supreme Court has issued notices to crucial parties involved in the Dharavi redevelopment project, notably the Maharashtra government, Adani Properties, and Seclink Technologies, which opposes the project allocation. Seclink previously claimed its bid was superior to Adani's but had its plea dismissed by the Bombay High Court in December 2024, which upheld the government's authority in bidder selection.
In a recent session, the Chief Justice-led Bench asked Seclink to prove that its Rs 8,640 crore bid significantly surpassed Adani's Rs 5,069 crore. However, the court made it clear that Seclink must fulfill all obligations outlined in Adani's agreement, including a Rs 1,000 crore lease to the Railways, a Rs 2,800 crore indemnity payment, and the construction of 812 railway quarters.
The court mandated that Adani Group maintain a separate bank account for project transactions and comply with financial record regulations. Additionally, it specified that final project awards are contingent on the appeal's outcome and that no special equity claims would be considered. All project-related documentation is to be submitted for review, with the next hearing scheduled for May 25, 2025.
Seclink had contended it was the peak bidder in the original 2018 tender, yet the High Court emphasized that decisions on tenders are within the government's discretion. Moreover, it noted Seclink's limited standing, being part of a consortium, and its failure to raise objections before bid openings.
Adani secured the top bid for the redevelopment project covering 600 acres, with plans to preserve open spaces. Dharavi, housing over 850,000 residents, is known for its extreme population density.
