Dharavi redevelopment project: State justifies awarding contract to Adani Properties
The affidavit is filed in response to a petition filed by UAE-based Seclink Technologies Corporation (STC), which has challenged the government’s decision to scrap the 2018 tender and award the project to the Adani Group firm following a fresh tendering process last year.
MUMBAI: In an affidavit filed in the Bombay high court, the state government has justified awarding Dharavi redevelopment tender to Adani Properties Private Limited, stating that the cancellation of earlier tender and awarding of the contract was done in transparent manner and no undue favour was shown to the firm.
The affidavit is filed in response to a petition filed by UAE-based Seclink Technologies Corporation (STC), which has challenged the government’s decision to scrap the 2018 tender and award the project to the Adani Group firm following a fresh tendering process last year.
The affidavit filed by the housing department stated that the 2022 tender provided for an additional liability on the bidders to pay at least ₹2,800 crore to the railways which owns a portion of the land to be covered under the Dharavi redevelopment project.
Besides, the bidder, under the fresh tender, is also required to provide constructed railway quarters on approximately 84,000 square meters and accommodate around seven lakh non-eligible slum dwellers either under affordable housing schemes or under the Pradhan Mantri Awas Yojna, it added.
The department added that the Dharavi redevelopment was a vital public project that will change the lives of thousands of people “living in squalor and disrespectful conditions” and any attempt to derail this redevelopment project should be thwarted as any stay on such projects would seriously impede its execution.
In its petition filed in November 2020, STC, which had made a successful bid of ₹28,572 crore for Dharavi Redevelopment Project (DRP) in 2019, had challenged the cancellation of the 2018 tender and issuance of a fresh tender in October 2022 by the state government, and sought a declaration that they were successful bidders and directions to the state government to issue Letter of Award (LoA) to them.
The company has also sought damages to the tune of ₹10,000 crore, stating that the decision of the government to issue a fresh tender was an attempt to keep them out of the bidding process to favour the bidder of their choice.
Even as the petition was pending before high court, the state government issued a fresh tender by tweaking certain clauses which kept the company out of the bidding process, and therefore on November 14, 2022, the UAE-based company had earlier urged the high court to allow them to amend the petition and include a challenge to the fresh tendering process as well.
The court had accordingly allowed the company to amend their petition and incorporate a challenge to the government resolution dated September 28, 2022, for issuance of a fresh tender for redevelopment of Dharavi.
The bench had on December 15, 2022, accepted the request and directed the state government to reply to the amended portions of the petition.
In February 2019, STC had emerged as the highest bidder to transform India’s largest slum pocket, outbidding Adani Infrastructure and Developers Private Limited. STC had quoted ₹7,200 crore while Adani Infrastructure and Developers had bid at ₹4,539 crore.
STC’s problem began when the then Devendra Fadnavis-led BJP government decided to use railway land near Dharavi for rehabilitation of slum-dwellers and to acquire it by paying ₹800 crore to the railways.
In fresh tendering conducted last year, Adani Properties turned out to be the highest bidder, outbidding DLF Ltd and Naman Developers. Accordingly, on July 13, the state cabinet approved award of contract to the Adani Group company’s investment offer of ₹5,069 crore to redevelop the 259-hectare slum, and five days later work order is issued to the company.
The STC has subsequently amended their petition and incorporated challenges to the July 13 cabinet decision and July 18 work order.
The petition will come up for hearing on Thursday.