Plea lacks force, says HC; dismisses SecLink’s petition against awarding Dharavi project to Adani

The Bombay high court dismissed a petition challenging the state government’s decision to award Dharavi Redevelopment Project to Adani Properties Ltd

MUMBAI: The Bombay high court on Friday dismissed a petition filed by SecLink Technologies Corporation, challenging the state government’s decision to award the Dharavi Redevelopment Project to Adani Properties Ltd. A bench of chief justice Devendra Upadhyaya and justice Amit Borkar held that the plea “lacked force”.

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SecLink Technologies Corporation, a Seychelles-based company and lead member of a consortium comprising various other companies, had participated in the 2018 bidding process for the redevelopment project, where SecLink’s highest bid was being considered along with Adani Realty’s second highest bid.

However, a housing department government resolution (GR), dated November 5, 2020, cancelled the tender process and this was informed to SecLink by a letter from chief executive officer (CEO) of the Dharavi Redevelopment Project/Special Planning Authority (DRP/SPA), dated November 11, 2020.

Later, a GR, dated September 22, 2022, approved a fresh tender process with modified terms and conditions. In December 2022, a Committee of Secretaries (CoS) selected Adani Realty as the lead partner in the bidding process. However, SecLink could not participate in the process, allegedly due to changed eligibility conditions.

The CEO of the DRP/SPA issued a GR, dated July 13, 2023, which granted Adani Properties a ‘letter of award’ for the redevelopment of the Dharavi Notified Area and directed it to implement the project immediately. Through its 2022 plea, SecLink challenged all of the above decisions in court.

Dr. Virendra Tuljapurkar, senior advocate, appearing on behalf of Seclink, had argued that the reasons given for the cancellation of the earlier tender process were not sustainable as the same were non-existent then, and that the cancellation was done for extraneous reasons. He argued that the action was arbitrary and violative of Article 14 of the Constitution.

Tuljapurkar also argued that SecLink was issued a letter in March 2019, whereby it was informed that its bid was the highest and that this amounted to final acceptance of the offer by DRP/SPA.

Tuljapurkar also alleged that the company could not participate in the 2022 tender process due to the changed eligibility conditions. Tuljapurkar argued that the eligibility conditions had been changed to favour other bidders and oust SecLink.

The court, however, noted that there was no decision declaring the petitioner as a successful bidder before the decision regarding the modification of the tender conditions was taken. The court also noted that SecLink had knowledge about the reasons for the change in the tender process and had acknowledged the same in a letter to one of the authorities responsible for the redevelopment.

The court further stated that merely because SecLink was one of the highest bidders in the 2018 bidding process did not vest any rights with it, and nor could it be said that the contract was concluded, noting that a letter intimating SecLink of its highest bid did not amount to a conclusion of the contract in its favour.

The court also observed that, admittedly, SecLink was not a part of the 2022 tendering process, and it was a settled position of law that one that has not participated in the tender process cannot be permitted to challenge the terms and conditions of the process.

The court, while dismissing the petition, said that the decision of “cancelling the earlier tender and all consequential actions of the respondent authorities cancelling the tender and requiring the petitioner (SecLink) … cannot be said to be bereft of tenable and valid reasons; neither can it be said to be suffering from the vice of arbitrariness, unreasonableness or perversity.”

SecLink is the lead member of a consortium consisting of New Consolidated Construction Co, Najaah Global Investment LLV, Al Khalida Real Estate, Krishna Infosol Pvt Ltd, Med Freshe Pvt Ltd, DSP Design Associates Pvt Ltd, and SecLink Technologies Corporation.