Why redevelopment project given to Adani group despite financial condition after Hindenburg: Dharavi MLA

In reply, Fadnavis said that due procedure was followed, adding that the company would be handed over the Letter of Intent (LOI) only after fulfilling certain conditions.

Raising the issue in the House, Gaikwad said, “There is an atmosphere of fear in our area (Dharavi). There is also a discussion on whether the tender procedure (for Dharavi redevelopment work) took place in a transparent and unbiased manner. People are taking out marches and some are preparing to file petitions in the court.”

She further stated, “The Adani group’s share prices are falling day by day since the past three months. The Hindenburg report came. Several serious allegations were made against the group (in the report). After considering all these aspects, including the deteriorating financial position of the group, people are raising concerns over it. The Adani group has not given the work order yet and it is being demanded that the work order should not be given.”

Gaikwad said people were concerned over the “unbiasedness and transparency” in the whole tendering process.

Questioning Fadnavis, she said, “What is the reason for giving Adani group such a big project when its financial condition is deteriorating?”

In response, Fadnavis said that the entire tender process of Dharavi redevelopment project was transparent, adding the “financial capability and position” of the company will be checked while issuing LOI for the redevelopment work.

“A global tender was floated. We received three responses of which two qualified and the highest bidder was selected. So, the procedure was followed. We have not yet issued LOI to the company because as per the tender procedure, LOI can be issued only after the decision of all the departments. Currently, one decision of the Urban Development department is pending. Once that decision comes, the LOI will be issued,” the deputy CM said.

“The tender has been designed in such a manner that the company will have to show how much upfront amount they have to give and remaining they have to give as bank guarantee. Hence, only the one who is financially capable can get this work and LOI,” Fadnavis added.

“The parameters of the financial capability of the company has been checked. Hence, before issuing the LOI, the company will have to show if they have that financial status, if the bank is willing to give them money. They will have to give bank certificate… maintain that much money in the bank account. If they fulfill all these, it means the company can do the project. If they can’t, they will not be given LOI,” he said.

In November last year, Gautam Adani-led Adani Realty had won the 259-hectare Dharavi cluster redevelopment project with an estimated worth of Rs 20,000-crore for an initial investment of Rs 5,069 crore.