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Supreme Court Allows Dharavi Redevelopment to Proceed, Ensures Financial Oversight

RR Team, March 8, 2025March 9, 2025

The Supreme Court has refused to halt the ambitious Dharavi Redevelopment Project, a transformative initiative aimed at reshaping Asia’s largest slum in Mumbai. The project, spearheaded by the Adani Group, has been at the center of legal disputes, with Dubai-based Seclink Technology Corporation (STC) challenging its allotment. Despite these legal challenges, the court has decided against issuing a stay order, considering the substantial progress made on the ground.

During the hearing, the bench, led by Chief Justice Sanjiv Khanna and Justice Sanjay Kumar, was informed that work had already commenced, with heavy machinery deployed and significant demolition activities underway, including the removal of an Indian Railways quarters. The court acknowledged the extent of work completed and instead directed the Adani Group to maintain an escrow account, ensuring transparency in financial transactions related to the project. This measure aims to address concerns regarding financial accountability, mandating that all payments be routed through a single account, with proper documentation such as invoices and brochures.

Seclink, which had initially won the bid in 2019 before it was canceled in favor of Adani in 2022, argued that its proposal was unfairly set aside. Representing the company, Senior Advocate C. Aryama Sundaram stated that Seclink was willing to increase its bid by 20%, pushing its offer from ₹7,200 crore to ₹8,640 crore. The court, however, asked the company to submit a formal affidavit detailing this revised offer.

The roots of this dispute trace back to 2022 when Adani Properties emerged as the highest bidder for the redevelopment of the 259-hectare slum in Central Mumbai. The group’s bid of ₹5,069 crore, along with an additional ₹2,800 crore payment to the railways, brought the total project cost to ₹7,869 crore. The Maharashtra government’s decision to issue a fresh tender, overriding Seclink’s previous bid, was upheld by the Bombay High Court in December 2024. The court dismissed allegations that the revised tender conditions were designed to favor Adani, calling such claims “misconceived.”

For the thousands of families living in Dharavi, the redevelopment project represents both hope and uncertainty. On one hand, it promises modern housing, better infrastructure, and improved living conditions. On the other, residents remain wary of displacement and the terms of rehabilitation. The project has faced scrutiny from activists and urban planners who stress the importance of ensuring that the original inhabitants of Dharavi receive fair and dignified rehabilitation.

As the legal battle continues, the Supreme Court’s decision marks a significant step in moving the redevelopment forward. However, with fresh objections and competing bids in play, the project’s journey remains complex. The coming months will be crucial in determining how the redevelopment unfolds, balancing the interests of corporate stakeholders, the government, and, most importantly, the people of Dharavi who stand at the heart of this transformation.

 

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