UAE firm threatens to move HC if not given Dharavi revamp project

Seclink Technology Corporation (STC), which had in 2019 won the bid for the ₹28,500-crore Dharavi redevelopment project, has warned the state that it will approach

Seclink Technology Corporation (STC), which had in 2019 won the bid for the ₹28,500-crore Dharavi redevelopment project, has warned the state that it will approach the Bombay high court (HC) and press for international arbitration if the contract is not awarded to them. STC also asserted that the state will have to pay them ₹2,299-crore compensation, if they are denied the project.

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The development comes against the backdrop of advocate general (AG) Ashutosh Kumbhakoni’s recommendation to the state to cancel the bid for the project and re-issue a new tender as the previous one did not take into account the 45-acre railway land acquired by the erstwhile government later on and the cost of rehabilitation. The state government, which had earlier said a decision on re-tendering would be taken after considering all views, called STC’s behaviour “unruly”. State housing minister Jitendra Awhad said, “Such a claim [STC’s] can’t stand as we haven’t awarded them the contract. We’re studying this issue legally.”

This effectively means that the 601-acre Dharavi redevelopment project, which has been languishing for 16 years, would be delayed further.

Although STC won the bid to transform the slum into a plush township in 2019 and the project was supposed to be funded by the royal family of United Arab Emirates, the state has not yet awarded them the contract. The problem began when the Devendra Fadnavis-led government acquired the railway land and ₹800 crore was paid to the Railways. As this was not mentioned in the tenders, the AG’s views were sought.

The firm on Saturday pointed out that the AG’s recommendation was “faulty and aimed at denying them the project”. “We arranged for the full funding of ₹28,500 crore and it is lying in the escrow account since February 2019, when we won the bid. We could have deployed this amount elsewhere. If the government does not award us the contract, they need to give us compensation,” said an STC spokesperson. He said they will seek compensation at the rate of 0.5% for every month, which works out to 6% per annum.

STC said if the government does not give them the contract, they will approach the Bombay HC and file an international arbitration case in Geneva. “We are the aggrieved party as we should have got the [contract] letter within seven days, but we waited for more than a year. We are ready to undertake the project even without the railway land. Even if the railway land is added, we are ready to pay the market price. What more can we do?” said the spokesperson.

Meanwhile, Dharavi residents said this means further delay for them. Raju Korde, who heads the Dharavi Redevelopment Committee, said, “This project can only be undertaken by someone who has adequate funds to implement rehabilitation. It’s the Dharavi residents who will suffer,” he said. The revamp has run into a lot of problems since its inception in 2004.