In a significant relief for the Adani Group, the Supreme Court of India has refused to impose a stay on the Dharavi Redevelopment Project. The decision was made during a hearing on a petition filed by the Seychelles-based Seclink Group, which had alleged irregularities in the tender process that awarded the project to Adani Realty.
Court’s Conditional Nod The Supreme Court’s decision, delivered on Friday, allows the project to continue but under certain conditions. The court emphasized that the project would proceed “subject to court orders” and directed Adani Group to maintain a single escrow account. All payments and invoices related to the project must be routed through this account to ensure financial transparency and accountability. The court’s intent is to facilitate potential reversals of transactions if a later judgment invalidates the project award.
Controversy Over Tender Process The controversy stems from a 2018 tender process where Seclink Group had submitted the highest bid of ₹7,200 crore, later willing to raise it to ₹8,640 crore. However, the Maharashtra government canceled this tender and issued a new one in 2022, leading to Adani Realty winning the bid with a significantly lower offer of ₹5,069 crore.
Seclink Group’s petition alleged that the tender conditions were modified to favor Adani Realty, describing the changes as part of a more enormous scandal. In response, the Supreme Court issued a notice to the Maharashtra government seeking an explanation for the cancellation of the previous tender and the subsequent changes in conditions that led to Adani’s selection.
The Adani Group, in its defense, apprised the court that the work on the redevelopment of Dharavi had already begun. The company claimed that stopping the project at this juncture would result in undue delays and financial losses.
The Supreme Court has also fixed the next hearing on May 25, 2025, and instructed all parties to file detailed responses. Legal professionals opine that the escrow arrangement indicates that the court intends to protect financial interests and take a neutral approach until a final decision is reached.
Background of the Project The Dharavi Redevelopment Project, one of the world’s largest urban renewal initiatives, aims to transform Mumbai’s sprawling slum into a modern residential and commercial hub. The project has been marred by controversies and legal battles since its inception, primarily focusing on land acquisition and the transparency of the tender process.
As the legal battle continues, the fate of thousands of residents and the multi-crore redevelopment plan hangs in the balance, making the May hearing crucial for all stakeholders involved.
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