The Supreme Court on Friday refused to stay the Dharavi redevelopment project being undertaken by the Adani Group. The court was hearing a plea by UAE-based Seclink Technologies, which had won the bid originally but lost in re-tendering after the project was modified. Seclink Technologies has challenged the Maharashtra government’s decision to cancel its 2019 bid for the redevelopment of Dharavi slums and issue a fresh tender in 2022 to Adani group.
The apex court declined an oral request for a status quo order on the project.
However, the court issued notices to Maharashtra Government and Adani Properties on the proposal by Seclink to increase its offer by 20%. A bench comprising Chief Justice of India Sanjiv Khanna and Justice Sanjay Kumar accepted the plea saying that it would increase its offer of ₹7,200 crore by 20 per cent.
The court ordered Seclink to submitted an affidavit in this regard. The court noted that the petitioner has offered to pay a higher amount than highest bidder Adani. Moreover, Seclink said it will agree with all other agreements of the highest bidder, which includes ₹1,000 crore towards lease and ₹2,800 crore toward indemnity amount.
During the hearing, Adani Group’s advocate Mukul Rohatgi told the court that equipment worth hundreds of crores has already been purchased by Adani for the project. Responding to this, the bench ordered to maintain an escrow account for all the payments.
The Bombay High Court in December 2024 had upheld the Maharashtra government’s decision to cancel the Seclink’s 2019 winning bid for the project and issue a fresh tender in 2022. The high court had said that the company’s petition lacked 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 state govt has 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.
