SUBJECT:

• GS-2: Governance (Urban Development, Public-Private Partnerships)
• GS-3: Economy (Infrastructure Projects, Legal and Financial Implications)

Key Highlights

Overview of the Dharavi Redevelopment Project

• Aims to transform Dharavi, one of Asia’s largest slums, into a modern urban area.
• Maharashtra government awarded the project to Adani Properties in 2022 after cancelling Seclink Technology Corporation (STC)’s bid.
• Spans 259 hectares, promising better living conditions and urban renewal.

Legal Challenges to the Project

• Seclink Technology Corporation (STC), a Seychelles-based company, challenged the awarding of the project to Adani Group.
• STC alleged that tender conditions were altered to benefit Adani, calling it an “abuse of power.”
• STC’s legal team claimed their bid was superior and should have been upheld.

Supreme Court’s Proceedings & Ruling

• A bench led by Chief Justice Sanjiv Khanna refused to halt the project.
• Acknowledged ongoing construction and ruled that the matter remains sub judice.
• Directed Adani to maintain separate financial accounts for transparency.

Financial Implications & Bidding Controversy

• STC offered to increase its bid from ₹7,200 crore to ₹8,640 crore, higher than Adani’s bid of ₹5,069 crore.
• Supreme Court clarified that STC’s bid excluded obligations that Adani had accepted, such as:
  • Upfront payment to Railways.
  • Construction commitments tied to the redevelopment.

Concerns of Transparency & Fairness

• STC’s appeal raised concerns over procedural impropriety and lack of transparency in the Maharashtra government’s tendering process.
• The Supreme Court acknowledged these concerns but found no strong reason to override the High Court’s decision on contract cancellation.

Future Legal Proceedings

• The Supreme Court has scheduled further hearings for May 25, 2025.
• The case outcome will impact:
  • Urban redevelopment policies.
  • Fairness in government contracts.
  • Judicial stance on infrastructure project bidding disputes.

Mains Mock Question

“Discuss the legal and governance challenges associated with large-scale urban redevelopment projects in India. How can transparency and fairness be ensured in government contracting?”