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The Supreme Court has agreed to review the Maharashtra government’s decision to award the Dharavi Redevelopment Project (DRP) to Adani Properties Ltd, directing that all financial transactions related to the project be routed through an escrow account. The court made the award of the contract subject to its final ruling while admitting a petition by SecLink Technologies Corporation (STC), which challenged the Maharashtra government’s tendering process.
A bench comprising Chief Justice of India Sanjiv Khanna and Justice Sanjay Kumar took note of STC’s claim that it had emerged as the highest bidder in the initial tender process but was later excluded in favor of a second bidding round, which ultimately awarded the contract to Adani Properties. The company proposed a revised bid of ₹8,640 crore, pledging to meet all obligations set in the second tender.
Court Questions Tender Process Changes
Dharavi, one of Asia’s largest slums, is undergoing a major redevelopment aimed at providing better housing, infrastructure, and economic opportunities. During the hearing, the Supreme Court examined modifications in the tender process that led to STC’s exclusion.
“There are two aspects—whether the cancellation of the first contract was justified, and whether the new tender conditions were designed to exclude the initial highest bidder,” the bench observed. The court pointed out that the Bombay High Court had not examined these issues while rejecting STC’s earlier plea.
STC’s lawyer, senior advocate CA Sundaram, argued that his client was arbitrarily excluded and claimed the new tender was tailored to favor Adani Properties. He added that STC was now willing to match all conditions and submit an updated bid. However, Solicitor General Tushar Mehta, representing DRP, noted that Adani’s bid stood at ₹8,869 crore, which included allocations for railway land, indemnity amounts, and the construction of residential quarters.
Adani Defends Award, Court Ensures Transparency
Senior advocate Mukul Rohatgi, representing Adani Properties, defended the process, stating that STC had earlier objected to railway land being included in the project. “They had said the project would not be feasible with railway land. Now, they cannot raise concerns because the second tender clearly incorporated railway land,” he argued.
In response, the Supreme Court directed that all financial transactions related to the project be conducted through an escrow account to ensure transparency.
“As the matter is sub judice, we direct that Adani Properties shall make all payments only through a single bank account, with proper invoices and billing as required under the Income Tax Act and relevant rules,” the court ruled.
The next hearing is scheduled for May 25, with the court ordering the submission of original files regarding the tendering process.
Background of the Dispute
The legal challenge follows the Bombay High Court’s December 2024 ruling, which dismissed STC’s petition against the Maharashtra government’s decision. The high court had held that STC’s plea “lacked force” since its 2019 bid was never officially accepted.
STC, a Seychelles-based firm, had initially won the 2018 tender process. However, the Maharashtra government canceled this process in November 2020 and initiated a fresh tender in September 2022 with revised eligibility conditions. Adani Realty was selected as the lead partner and received the letter of award in July 2023.
STC claims that the cancellation of the earlier tender violated Article 14 of the Constitution and was designed to exclude it from participating in the revised process. However, the Bombay High Court ruled that a company that did not participate in the 2022 tender process could not challenge its conditions.
What’s Next?
The Supreme Court’s decision to review the case adds uncertainty to one of Mumbai’s most ambitious redevelopment projects. While Adani Realty has already commenced work, the final outcome of the court’s ruling could impact the future of the Dharavi Redevelopment Project.
Sources By Agencies
