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Bombay High Court Approves Adani Group’s Dharavi Redevelopment Tender

  • 20 Dec 2024 08:57 AM
  • Dharavi redevelopment, Adani Group, Bombay High Court, tender award

In a significant legal development, the Bombay High Court has upheld the Maharashtra government's decision to award the Dharavi slum redevelopment project to the Adani Group, dismissing a challenge filed by UAE-based Seclink Technologies. The court ruled that there was no evidence of "arbitrariness, unreasonableness, or perversity" in the state government's decision-making process. Seclink Technologies had alleged that the tender conditions were specifically designed to favor the Adani Group, but the court rejected this claim, noting that three bidders participated in the process, with the Adani Group emerging as the highest bidder in the 2022 tender round.

The court also emphasized that while Seclink Technologies was the highest bidder in the 2018 tender, no formal contract or agreement was established at that time, and the government’s cancellation of the initial tender was justified. It acknowledged the challenges posed by external factors like the COVID-19 pandemic and the Russia-Ukraine war, which impacted economic conditions, leading to the issuance of a new tender. The court clarified that a bidder cannot insist on winning solely based on having the highest bid, especially when no final selection had been made in the previous tender.

The redevelopment of Dharavi, one of the world’s most densely populated slums, has been a highly contentious issue in Maharashtra politics. Opposition parties, including the Shiv Sena (UBT) and Congress, have fiercely opposed the awarding of the project to the Adani Group, claiming irregularities and alleging that the project amounts to a "land scam." However, the ruling government has defended the decision, stating that the process was conducted transparently, and no undue advantage was given to the Adani Group. The project is expected to bring significant urban transformation to Dharavi, integrating both residential and industrial redevelopment in one of Mumbai's most challenging areas.

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