SC Ruling on Dharavi Redevelopment Project

March 8, 2025

The Dharavi Redevelopment Project is urban rehabilitation initiative in Mumbai. Recently, the Supreme Court of India upheld the project’s continuation despite challenges to its awarding. The project was granted to the Adani Group in 2022, following the cancellation of a previous bid won by Seclink Technology Corporation (STC). The court’s decision comes amid ongoing construction and scrutiny regarding the tender process.

Project Overview

The Dharavi Redevelopment Project aims to transform one of Asia’s largest slums into a modern urban area. The Maharashtra government awarded the project to Adani Properties in 2022 after cancelling STC’s earlier successful bid. The project spans 259 hectares and promises improved living conditions for residents.

Legal Challenges

Seclink Technology Corporation, based in Seychelles, challenged the awarding of the project to Adani. The company claims that the tender conditions were modified to favour Adani, constituting an “abuse of power.” STC’s legal team argues that their bid was superior and should have been accepted.

Supreme Court Proceedings

The Supreme Court, led by Chief Justice Sanjiv Khanna, refused to halt the project. It acknowledged the ongoing construction and noted that the matter is sub judice. The court has required Adani to maintain separate financial accounts for the project to ensure transparency.

Financial Implications

STC proposed to increase its bid from Rs 7,200 crore to Rs 8,640 crore, higher than Adani’s bid of Rs 5,069 crore. However, the Supreme Court clarified that STC’s bid did not include certain obligations that Adani had accepted, such as an upfront payment to the Railways and construction commitments.

Concerns of Fairness

The appeal by STC marks concerns about the fairness of the tender process. The company argues that the Maharashtra government’s actions reflect procedural impropriety and a lack of transparency. The Supreme Court noted these issues but expressed preliminary agreement with the High Court’s decision on the original contract’s cancellation.

Future Proceedings

The Supreme Court has scheduled further hearings for May 25. The outcome will determine the future of the project and whether STC’s claims will be upheld. The decision will also impact the principles of fairness and transparency in government contracting.

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