Dharavi redevelopment project to go on as SC refuses status quo

New Delhi: The Supreme Court on Friday declined to halt the Dharavi redevelopment project, allowing work to proceed as it sought responses from the Maharashtra government and Adani Properties Pvt Ltd on a petition challenging the Bombay High Court’s verdict upholding the project’s tender process.

A bench comprising Chief Justice Sanjiv Khanna and Justice Sanjay Kumar issued notices to the state government and Adani Properties Pvt Ltd while considering a plea by UAE-based Seclink Technologies Corporation. The petitioner challenged the December 20, 2024, decision of the Bombay High Court, which dismissed its objections and ruled that the tender awarded to the Adani Group was free from “arbitrariness, unreasonableness, or perversity.”

Senior advocate C Aryama Sundaram, representing Seclink Technologies Corporation, urged the top court to order a status quo on the redevelopment project. However, Chief Justice Khanna simply responded, “No.”

Sundaram argued that his client had initially emerged as the highest bidder in 2018 with a Rs 7,200 crore offer, but the Maharashtra government had scrapped the tender before issuing a fresh one in 2022, in which Adani Properties Pvt Ltd secured the contract with a Rs 5,069 crore bid. Sundaram further submitted, “I will increase my offer of Rs 7,200 crore by 20 percent, bringing it to Rs 8,640 crore.” Solicitor General Tushar Mehta, appearing for the Maharashtra government, asked, “What about additional obligations?” The court then inquired whether Seclink Technologies Corporation was willing to comply with the same conditions imposed on Adani Properties Pvt Ltd, to which Sundaram replied affirmatively.

The bench noted the petitioner’s commitment and directed it to submit an affidavit confirming the same. The matter is scheduled for hearing in the week of May 25, with the court making it clear that “no special equities would be claimed by either side.”

Senior advocate Mukul Rohatgi, representing Adani Properties Pvt Ltd, informed the court that work on the project was already underway. “I have carried out constructions. I have deposited funds. About 2,000 people are employed,” he stated.

Mehta added that railway quarters had been demolished and new constructions had begun as part of the redevelopment efforts.

Seclink Technologies Corporation has repeatedly contested the state government’s handling of the tender. It initially challenged the cancellation of the 2018 tender and later opposed the awarding of the 2022 tender to Adani Properties Pvt Ltd. The Bombay High Court had rejected Seclink’s contention that the tender was “tailor-made” for a particular firm, noting that three bidders had participated in the process.

The Maharashtra government had defended its decision, asserting that the 2018 tender was scrapped due to multiple factors, including the impact of the COVID-19 pandemic and the Russia-Ukraine war on economic conditions. It further stated that the fresh tender process in 2022 was conducted transparently without any undue advantage to a particular bidder.

Dharavi, one of the most densely populated slums in the world, is spread over 259 hectares and comprises a mix of residential and small industrial units. The redevelopment project aims to transform the area into a modern urban space with improved infrastructure and living conditions.