Bombay High Court Dismisses Plea Against Adani Group in Dharavi Redevelopment Case

The Bombay High Court on Friday delivered a significant relief to the Adani Group by dismissing a plea filed by Dubai-based Seclink Technology Corporation (STC). The petition challenged the formal award and work order issued to Adani Properties Private Limited for the Dharavi slum redevelopment project. The court rejected allegations that the tender conditions were deliberately tailored to favor the Adani Group and found the claims baseless and “misconceived.”

A division bench comprising Chief Justice Devendra Kumar Upadhyaya and Justice Amit Borkar ruled that the grounds presented in the petition lacked merit. Consequently, the challenge to the government’s decision to cancel the previous tender and issue a new one failed, leading to the dismissal of the writ petition.

The dispute stemmed from a government resolution (GR) issued on July 13, 2023, by the state housing department, which formally awarded the Dharavi redevelopment project to Adani Properties as the lead partner. A subsequent work order followed on July 17, 2023. STC contended that the government had unfairly favored Adani Properties, alleging a loss to the public exchequer.

Background of the Project

The Dharavi redevelopment project, involving nearly 259 hectares of slum area in Central Mumbai, has been a subject of prolonged deliberation. Adani Properties emerged as the highest bidder in November 2022, quoting ₹5,069 crore, with an additional ₹2,800 crore to be paid to the railways, bringing the total bid amount to ₹7,869 crore. This outbid Seclink’s earlier bid of ₹7,200 crore, submitted under a previous tender canceled in October 2020 by the Maha Vikas Aghadi (MVA) government led by Uddhav Thackeray.

The project gained momentum in 2016 with the preparation of a Detailed Project Report (DPR) during the BJP-Shiv Sena government under Devendra Fadnavis. By November 2018, the Fadnavis government had approved a new model for the slum redevelopment initiative. However, the project faced hurdles when Seclink’s 2019 bid was not awarded due to the inclusion of railway land in the redevelopment plans.

Seclink’s Allegations and Arguments

Represented by Senior Advocate Virendra Tulzapurkar, STC argued that it had been the successful bidder in 2019 but was denied the tender due to the government’s decision to incorporate railway land into the project. The petitioner alleged that the subsequent award to Adani Properties caused financial losses to the public exchequer and was biased.

The petitioner further contended that there was no substantial change in the tender conditions between the earlier and revised versions since the railway land remained a part of both proposals. STC argued that the new tender was designed to eliminate their participation and favor Adani Properties.

Government’s Defense

Senior Advocate Milind Sathe, representing the Maharashtra government and the Slum Rehabilitation Authority (SRA), refuted the allegations, stating that the new tender process initiated by the Eknath Shinde-led government in 2022 was entirely transparent. According to the government, a fresh 45-acre plot was identified to replace the railway land, and Adani Properties qualified for the bid through a fair process.

The state housing department maintained that no undue advantage was extended to the Adani Group, emphasizing that the tender process adhered to principles of transparency and fairness.

High Court’s Observations

The court observed that although Seclink had been initially intimated as the highest bidder in 2019, the Committee of Secretaries (CoS) of the state government had not finalized its selection as the awarded bidder. The bench noted that the petitioner’s incurred expenses due to the cancellation of the earlier tender did not invalidate the government’s decision to cancel the process and issue a fresh tender.

Regarding the fresh tender, the court highlighted that three bidders participated, of which two were found technically qualified. It rejected the claim that the tender conditions were customized to benefit a particular bidder, noting that the competition among multiple bidders disproved such allegations.

Additionally, the bench underscored that Seclink had chosen not to participate in the new tender process. By opting out, Seclink forfeited the right to challenge the terms and conditions of the tender after the financial bids were opened. “The submissions that conditions of the fresh tender were crafted to exclude the petitioner and favor a specific tenderer are, in our opinion, misconceived,” the court stated.

Conclusion

The Bombay High Court’s ruling dismissed Seclink Technology Corporation’s plea, allowing the Dharavi redevelopment project to proceed under the leadership of Adani Properties. The court emphasized the transparency of the revised tender process and upheld the government’s decision to cancel the previous tender and issue a new one.

This judgment clears a major legal obstacle for the Adani Group, enabling it to move forward with the ambitious redevelopment of Dharavi, one of the largest slum areas in Asia. The project is expected to bring transformative changes to the region, with significant social and economic implications for Mumbai.