Supreme Court Rejects Pause on Dharavi Redevelopment Project

On Friday, the Supreme Court declined to impose a status quo on the ongoing redevelopment of Mumbai’s Dharavi, one of the largest slums in the world, setting the stage for further legal scrutiny of the project. The bench, led by Chief Justice Sanjiv Khanna and Justice Sanjay Kumar, has called for responses from the Maharashtra government and Adani Properties Pvt Ltd, which won the redevelopment bid.

This directive comes in response to a petition contesting the December 20, 2024 verdict of the Bombay High Court, which had approved the tender process awarded to Adani Properties. The High Court had dismissed allegations of “arbitrariness, unreasonableness or perversity” in the decision-making process, rejecting the plea from UAE-based Seclink Technologies Corporation, which had initially emerged as the highest bidder in 2018.

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The legal battle intensified after the Maharashtra government scrapped the initial tender and reissued it in 2022 under new conditions, citing the COVID-19 pandemic and geopolitical tensions such as the Russia-Ukraine war as contributing factors. The Adani Group subsequently emerged as the highest bidder with an offer of Rs 5,069 crore, securing the contract for the 259-hectare project in the heart of Mumbai.

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During the Supreme Court proceedings, Senior Advocate C Aryama Sundaram, representing Seclink Technologies Corporation, made a dramatic plea to the court to maintain the status quo and even proposed to increase their original bid of Rs 7,200 crore by 20% to Rs 8,640 crore, under the same obligations as the current highest bidder.

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However, Chief Justice Khanna denied the request for a status quo, noting the progress already made on the project by Adani Properties. Senior Advocate Mukul Rohatgi, representing Adani Properties, informed the court of ongoing construction activities, stating that funds had been deposited and approximately 2,000 people were currently employed on the site.

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