Dharavi project to go on as SC refuses status quo

The Supreme Court on Friday refused to halt the ongoing work on the Dharavi redevelopment project, which is being executed by Adani Properties Pvt Ltd. However, a Bench led by Chief Justice Sanjiv Khanna issued notices to the Maharashtra government and Adani Properties Pvt Ltd, seeking their responses to a petition filed by UAE-based Seclink Technologies Corporation, which has challenged the Bombay High Court’s verdict upholding the project’s tender process.

Dharavi, one of the world’s densest urban slums, is home to both residential settlements and small industrial units. The project, aimed at transforming 259 hectares in the heart of Mumbai, has been mired in legal battles since 2018, when Seclink Technologies Corporation first emerged as the highest bidder with a Rs 7,200 crore offer. However, the Maharashtra government later scrapped that tender, citing various economic factors, including the Covid pandemic and the Russia-Ukraine war, and floated a fresh bid in 2022. In this round, Adani Properties Pvt Ltd won the contract with a Rs 5,069 crore bid.

On December 20, 2024, the Bombay High Court upheld the Maharashtra government’s decision, ruling that there was no arbitrariness or irregularity in awarding the project to Adani. Seclink, however, has challenged this ruling before the Supreme Court, arguing that their Rs 7,200 crore bid was unfairly disregarded.

During Friday’s hearing, senior advocate C Aryama Sundaram, representing Seclink, urged the court to order a status quo on the project. He also offered to increase Seclink’s original bid by 20 per cent, taking it to Rs 8,640 crore. However, the Bench declined to stay the project at this stage. Solicitor General Tushar Mehta, representing the Maharashtra government, questioned whether Seclink was prepared to meet all additional obligations required in the new tender. The court then directed Seclink to file an affidavit confirming its willingness to comply with the same terms as Adani.

Meanwhile, senior advocate Mukul Rohatgi, appearing for Adani Properties, emphasised that work on the project had already begun, funds had been deposited, and about 2,000 people were employed in the redevelopment efforts.

While the Supreme Court will hear the matter again in May, it has directed Adani Properties Pvt Ltd to ensure that all project-related payments are processed through a single bank account for transparency.