Supreme Court Seeks Response From Maha Govt, Adani Properties

Adani Properties

The Supreme Court has asked the Maharashtra government and Adani Properties to respond to a petition filed by UAE-based Seclink Technologies.

The company is challenging the state’s decision to cancel its 2019 bid for the Dharavi redevelopment project and award the contract to Adani through a fresh bidding process in 2022.

Court’s Order

A panel of judges, including Chief Justice of India Sanjiv Khanna and Justice Sanjay Kumar, considered Seclink’s plea after the company stated that it was willing to increase its original bid of ₹7,200 crore by 20%. The Court then directed Seclink to submit an official affidavit confirming the revised offer and scheduled a hearing for May 25. Additionally, the Court stated that Seclink must fulfill all conditions that the highest bidder had agreed to, including a ₹1,000 crore lease payment and ₹2,800 crore indemnity amount.

Background

In 2019, Seclink had won the original bid for the Dharavi redevelopment project by offering ₹7,200 crore, surpassing Adani’s ₹4,539 crore bid. However, in 2022, the Maharashtra government scrapped the earlier tender and issued a fresh one, which resulted in the contract being awarded to Adani. Seclink challenged this decision in the Bombay High Court, which upheld the government’s move. Following this, Seclink approached the Supreme Court to contest the decision.

The Maharashtra government defended its actions by stating that several economic factors had changed between 2019 & 2022, requiring modifications to the project. The new plan included an additional 45 acres of railway land to assist in slum rehabilitation. The state also cited the impact of global economic shifts, such as the COVID-19 pandemic, the Russia-Ukraine war, currency fluctuations, and rising interest rates. These factors, according to the government, made it necessary to change the financial terms of the project to ensure its viability.

More Into The Case

The Supreme Court also ordered Adani Properties to maintain all project-related payments in an escrow account but declined to halt the redevelopment work. The case will now proceed with further hearings, with the next session scheduled for May 25.

Senior Advocate Aryama Sundaram represented Seclink, while Solicitor General Tushar Mehta appeared on behalf of the Maharashtra government, and Senior Advocate Mukul Rohatgi represented Adani.