Supreme Court Issues Notice On Plea Challenging Award Of Dharavi Redevelopment Project To Adani, Petitioner Offers Higher Bid Than Adani

The Supreme Court today issued notice in a plea by SecLink Technologies challenging the Bombay High Court decision which upheld the tender awarded to Adani Properties for Dharavi Slums Redevelopment Project. 

The bench of CJI Sanjiv Khanna and Justice Sanjay Kumar was hearing a challenge against the Bombay High Court order upholding the Maharashtra government's decision to cancel Dharavi  Slums redevelopment tender in favour of SecLink Technologies Corporation (petitioner) and reissuing it to Adani Properties Pvt. Ltd.

Two issues raised by  SecLinkare (1) the cancellation of the tender issued to petitioner as there was a change in the contract and it now included development of the railway land in the region; (2) the issue of the terms fixed under the second tender. 

While issuing notice in the matter, the Court passed the following order : 

"It is submitted that the petitioner is ready to offer Rs. 8640 Crores which is substantially more than the offer given by the highest bidder of Rs 5069 crores."

"It is clarified that this excludes all other obligations which the highest bidder has agreed- that is Rs.1000 crores towards payment of lease and 2800 crores as minimum indemnity amount ...the petitioner will file an affidavit to the said effect before this Court. Issue notice returnable on 25th May, 2025" 

The bench further added that "all payments will only be done through an escrow account" in relation to the tender. The CJI added that since the matter is sub-judice- the 3rd respondent- Adani would make payments only through one bank account and disbursements would be made for the execution ofthe  contract. Proper invoices and billing is also to be maintained. 

Since few demolition works have started to execute the contract, the Court clarified that "no special equities will be claimed by either side" 

During the hearing, Sr Advocate Aryama Sundaram appearing for the petitioner argued that it was willing to increase the tender offer of Rs 7200 crores  by 20 %.  Sundaram made an undertaking with that regard also and clarified that the increased sum will be along with the same obligations as per the new tender conditions. 

The Court noted two key aspects (1) the obligation sum is much greater in the fresh tender issued ; (2) the second tender conditions as per the petitioner, were tweaked - 'so that he is thrown out- he is not allowed to participate, and High Court has not examined that question' 

Sr Advocate Mukul Rohatgi appearing for Adani then interjected to point out that now, the petitioner is estopped to raise the second issue. 

Solicitor General Tushar Mehta, appearing for the State of Maharastra, submitted that as per the fresh tender awarded,  the development plan has begun and railway quarters have also been demolished 

Before The Bombay High Court 

The Bombay High Court on December 20, 2024 upheld the tender awarded to Adani Properties Pvt. Ltd. by the State Government for redevelopment of Dharavi slums.

In doing so, a division bench of Chief Justice Devendra Kumar Upadhyay and Justice Amit Borkar found that the cancellation of an earlier tender and award of a new tender to Adani Propertied was not arbitrary or irrational.

The earlier tender process was issued by the Maharashtra Government in 2018. However, it cancelled the tender and issued a fresh tender process in 2022 with modified conditions for the redevelopment project.

SecLink Technologies Corporation (petitioner), a company incorporated in the Seychelles, was the highest bidder in the first tender process. In the financial bids of the first tender, the SecLink quoted bid price of Rs.7200 crores whereas Adani Properties quoted Rs.4529 crores.

SecLink challenged the decision taken by the Committee of Secretaries (CoS) of the Government of Maharashtra (GoM) on 27 August 2020, where the tender process initiated on 28 November 2018 for redevelopment of Dharavi area was cancelled.

The CoS made a decision to take recourse to the process of re-tendering for the project so as to include 45 acres of railway land in the redevelopment project. The Government Resolution dated 5 November 2020 issued by Housing Department of GoM, opened fresh tender with modified terms and conditions.

In the fresh tender process, Adani Properties was awarded the tender with price bid of Rs.5069 crores. SecLink argued that the fresh tender was issued with a view to defeat it and other prospective bidders' rights and to favour a particular bidder. It contended that the fresh tender was tailor-made to suit a particular tenderer.

The High Court opined that the reasons given by the CoS for cancelling the earlier tender process was justified.

It observed that the CoS discussed that the inclusion of railway land makes the project more viable and that such inclusion was in public interest. It stated that the fresh tender was issued keeping such inclusion in mind.

Case Details : SECLINK TECHNOLOGIES CORPORATION vs. THE STATE OF MAHARASHTRA|SLP(C) No. 006090 - / 2025 

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