Dharavi Redevelopment Project: Supreme Court Rejects Rival Firm's Plea Against Adani Over Alleged Tender Favouritism

The Supreme Court on Friday (7 March) rejected a plea seeking to pause the Dharavi Redevelopment Project, which is being executed by the Adani Group, reported The Indian Express.

The petition was filed by Seclink Technology Corporation (STC), a Dubai-based firm, challenging the Maharashtra government’s decision to cancel its 2019 bid and award the project to Adani through a fresh tender process in 2022.

Court Rejects Status Quo Request

A bench comprising Chief Justice Sanjiv Khanna and Justice Sanjay Kumar refused to impose a status quo on the project, emphasising that construction had already commenced.

Representing the Adani Group, Senior Advocate Mukul Rohatgi informed the court that heavy machinery worth significant amounts had already been deployed, and several hundred workers were actively engaged at the site. Further, demolition of certain structures, including an Indian Railways quarters, was already underway.

While declining to halt the project, the bench directed the Adani Group to manage all financial transactions through an escrow account and maintain proper documentation.

STC’s Challenge and Counteroffer

Senior Advocate C Aryama Sundaram, appearing for STC, contended that the tendering process had been altered to favor Adani. 

He further informed the court that STC was prepared to increase its bid by 20 per cent, raising it to Rs 8,640 crore, surpassing Adani’s winning bid. The court, however, did not pass an immediate ruling on this proposal and instead instructed STC to submit an affidavit detailing the revised offer.

Background of the Dispute

The dispute traces back to 2019, when STC initially won the tender for the Dharavi Redevelopment Project. However, in 2022, the Maharashtra government annulled the previous process and invited fresh bids, leading to Adani Properties emerging as the highest bidder with an offer of Rs 5,069 crore, excluding additional payments to Indian Railways.

The formal contract was awarded in July 2023, and the Bombay High Court upheld this decision in December 2024, dismissing STC’s challenge.