Bombay High Court on Friday upheld the Maharashtra government’s decision to award the Dharavi slum redevelopment project to Adani Properties Private Limited, dismissing a petition by UAE-based Seclink Technologies Corporation that challenged the tender process. The court said that there was no arbitrariness, unreasonableness or perversity in the decision to award the project to the Adani Group company.
A division bench of Chief Justice D K Upadhyaya and Justice Amit Borkar dismissed the petition filed by Seclink Technologies challenging the govt’s decision. The bench noted the company’s petition lacks force and hence stands dismissed.
In 2018, Seclink Technologies had emerged as the highest bidder with a ₹7,200 crore offer for the Dharavi slum redevelopment project. However, the state government cancelled this tender, citing various external factors, including the COVID-19 pandemic and the Russia-Ukraine conflict, which impacted the financial and economic landscape. Additionally, an extra 45 acres of land became available for the project from the Indian Railways in March 2019, further justifying the reissuance of the tender.
In 2022, a new tender was issued with additional conditions, and Adani Properties secured the project with a ₹5,069 crore bid. Seclink Technologies contested both the cancellation of the 2018 tender and the awarding of the 2022 tender to Adani, alleging a lack of transparency and fairness in the process.
Seclink argued that its ₹7,200 crore offer was higher and more deserving than Adani’s ₹5,069 crore bid, and alleged that the decision to cancel the earlier tender issue a fresh one was biased, violating principles of natural justice.
The division bench, comprising Chief Justice D K Upadhyaya and Justice Amit Borkar, found no merit in Seclink’s arguments, stating that the petition lacked “force and effort.” The court accepted the government’s assertion that the tendering process was transparent and fair, leading to the dismissal of Seclink’s plea.
The state govt also stated that even though Seclink had emerged as winner in the 2018 tender, no formal contract was signed with the company, therefore the company does not have any legal right against cancellation of the tender process. The govt said that the 2018 tender was officially cancelled due to significant changes in tender conditions post the “Bid Due Date.”
The Dharavi redevelopment project aims to transform the 259-hectare slum area in central Mumbai into a modern urban space, providing improved housing and amenities for its residents. The project’s progression is expected to significantly impact the lives of Dharavi’s inhabitants and the city’s landscape.
The project has been a subject of politics because the tender has been won by an Adani group company. While the Shiv Sena initially supported the redevelopment initiative during its tenure in the Maharashtra government, the Thackeray-led faction of Shiv Sena started opposing the project after breaking away from the NDA and losing power. The party has been questioning the project’s transparency and the decision to award the tender to the Adani Group.
Opposition parties allege that the new tendering process in 2022 was skewed in favor of Adani Properties, alleging that the company won the tender because of the perceived closeness of the Adani Group to the central government.
The BJP, in turn, dismissed these allegations as politically motivated and aimed at stalling development projects in the state. Maharashtra Chief Minister Devendra Fadnavis has defended the decision to retender the project, emphasizing the government’s commitment to ensuring fairness and efficiency. Fadnavis argued that the inclusion of additional land from Indian Railways and other changes to the tender justified the revised process, which has been validated by the Bombay High Court.
