BHC Ratifies Tender Awarded To Adani Group To Redevelop Dharavi Slum Sprawl

The Bombay High Court on Friday has upheld the decision of Maharashtra government to award the Dharavi slum redevelopment project to Adani Properties Private Limited, dismissing a petition filed by UAE-based Seclink Technologies Corporation.

The court, in its judgment delivered on Friday, stated that the petition lacked merit and was therefore dismissed.

The Dharavi Redevelopment Project, covering 259 hectares, had been awarded to Adani Properties after the company emerged as the highest bidder with a Rs 5,069-crore offer during the 2022 tender process. This followed the cancellation of an earlier 2018 tender, in which Seclink Technologies had been the highest bidder with a bid of Rs 7,200 crore.

The Maharashtra government had canceled the 2018 tender due to various challenges, including the economic impact of the Covid-19 pandemic and the Russia-Ukraine war, which affected financial conditions.

Seclink Technologies contested the cancellation of the 2018 tender, followed by the awarding of the contract to Adani Properties in 2022. The company argued that the government’s actions were unfair.

However, the Bombay High Court found the challenges presented by Seclink to be without substance, affirming that the cancellation of the 2018 tender and the subsequent issuance of the new one were justifiable.

In its defense, the state government stated that the tender process was transparent and that no undue favoritism was extended to the Adani Group. The government explained that after the cancellation of the 2018 tender, it issued a fresh tender in 2022 due to shifting economic and financial conditions, which included factors like the pandemic and the geopolitical situation.

Furthermore, the government clarified that no contract had been formed between them and Seclink Technologies, and therefore the company had no legal right to challenge the decision.

The original 2018 tender had been issued in November of that year, with bids being opened in March 2019. Although Seclink Technologies was the highest bidder, additional land—45 acres—was made available to the government by Indian Railways, which the state government argued led to a material change in the conditions of the tender.

As a result, in November 2020, the government issued a resolution canceling the tender and opening the door for fresh bids under new terms. Seclink Technologies, along with other companies, had the opportunity to submit new bids in line with the updated conditions.

Ultimately, the Bombay High Court dismissed the petition, reinforcing the state’s position that the entire tender process was legally sound, transparent, and aligned with the evolving economic landscape.

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