Dharavi redevelopment: No undue favour to Adani Group, tender process was transparent, Maharashtra tells HC

The state government, earlier this month, filed an additional affidavit in reply to a plea by Seclink Technology Corporation (STC), a Dubai-based firm challenging the decision of formally awarding the bid to the Adani Group. A division bench led by Chief Justice Devendra Kumar Upadhyaya is likely to hear the plea on Thursday.

The government said Seclink’s contention of “loss to exchequer is false and misconceived”.

The government further claimed that the new tender has considered rehabilitation and rehousing even for the around seven lakh non-eligible persons, making the redevelopment process more “inclusive”.

As per the old tender, non-eligible slum tenements were not entitled for rehabilitation and they would have to approach the nodal agency under the Pradhan Mantri Awas Yojana (PMAY).

“It is denied that the new tender was floated to favour respondent Adani Group. The new tender process was conducted in an absolutely transparent manner and in fact the new tender attracted more bidders than those who had participated in the old tender,” the state affidavit reads.

The affidavit, filed through Sunil Tumbare, deputy secretary of the state housing department, stated that the new tender put a liability on the bidder for a minimum payment of Rs 2,800 crore to be paid to the Railway Land Development Authority (RLDA) as land owned by the railways was included in the redevelopment project.

The Adani Group was declared the highest bidder after it quoted Rs 5,069 crore and with the Rs 2,800-crore payment to the railways, the bid amount stood at Rs 7,869 crore, which exceeded the Rs 7,200 crore price bid of Seclink under the old tender, which was cancelled by the MVA government in October 2020.

It added that the new tender attracted more bidders than those who had participated in the old bidding process.
The government also said that the Dharavi redevelopment project was an “extremely vital public purpose project” which would change the lives of thousands of persons living in the slums.

“Any attempt made by persons to derail this redevelopment project should be thwarted…,” the affidavit reads.

The state government clarified that the bid amount was not required to be paid to the state as a consideration or revenue and it was solely required as an undertaking for the redevelopment project by the selective bidder. It said the bid criterion was an ability to infuse funds in the special purpose vehicle (SPV). Therefore, the loss to the exchequer as alleged by the STC was not even a consideration, the state said.

The state government issued a GR on July 13 and issued a work order on July 17 to the Adani group. The STC had claimed that it was a successful bidder in January 2019 against the Adani Group.

The Adani Group had made an investment offer of Rs 5,069 crore to redevelop the nearly 259-hectare slum, which the state government formally accepted through its July 13 GR.

Last November, Adani Properties won the bid to redevelop the slum. The state government on July 13 appointed Adani Properties Pvt Ltd as the lead partner in the project and work order was issued on July 17.