SC refuses stay on Adani Group's Dharavi slum redevelopment project
What's the story
The Supreme Court of India has refused to grant an interim stay on the Adani Group-led Dharavi slum redevelopment project.
The decision comes after Dubai-based Seclink Technologies Corp challenged the Maharashtra government's decision to award the major urban rehabilitation project to the Adani Group subsidiary, Adani Properties.
The Supreme Court also issued notices to all parties involved and scheduled the next hearing for May 25.
Court proceedings
Seclink's legal challenge dismissed
Seclink Technologies Corp had earlier challenged the Maharashtra government's decision in the Bombay High Court.
The company was the highest bidder in 2019, surpassing Adani's ₹4,539 crore bid. However, in 2022, the Maharashtra government decided to amend the proposal by integrating 45 acres of railway land for slum redevelopment.
As a result, the state administration cancelled the 2019 tender and initiated a fresh auction in 2022.
Project guidelines
Supreme Court's directives to Seclink and Adani Group
In December 2024, the Bombay High Court rejected Seclink's plea, saying there was not enough merit and highlighting the government's prerogative to decide appropriate bids for such projects.
Seclink then moved the SC.
During the hearing on Friday, the bench, headed by Chief Justice of India Sanjiv Khanna, entertained the plea after Seclink said it would increase its initial offer of ₹7,200 crore by 20 per cent. The court then ordered Seclink to file an affidavit in this regard.
Financial oversight
SC mandates separate account for project transactions
The court also made it clear that Seclink will have to fulfill all commitments made by Adani Group earlier.
This includes ₹1,000 crore lease payment to the Railways and ₹2,800 crore indemnity payment and construction of 812 railway quarters.
The Supreme Court also directed Adani Group to keep a separate bank account for all credits and disbursements for the execution of the Dharavi slum redevelopment project.
This is after construction and demolition work had already started at the site.
Future proceedings
Next hearing scheduled for May 25, 2025
The court stressed that "proper accounts including invoices, etc as required by the Income Tax Act and Rules shall be undertaken," clarifying no special equity will be claimed.
In its defense, the Maharashtra government said that the decision to revise the competition was not arbitrary or meant to benefit any specific firm.
The state said the economy had changed between 2019 and 2022, requiring project terms to change. It cited COVID-19, the Russia-Ukraine war, Rupee-USD exchange rate swings, among others.