The Bombay High Court Today (Dec 20) dismissed a petition filed by UAE-based Seclink Technologies challenging the Maharashtra government’s decision to cancel its 2019 bid for the redevelopment of Dharavi slums and issue a fresh tender in 2022. This decision ultimately led to the project being awarded to Adani Properties.
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MUMBAI: The Bombay High Court dismissed a plea by UAE-based Seclink Technologies, challenging the Maharashtra government’s decision to cancel its 2019 bid for Dharavi’s redevelopment and start a fresh tender process in 2022.
This resulted in the contract being awarded to Adani Properties.
The decision was upheld by a bench comprising Chief Justice DK Upadhyaya and Justice Amit Borkar, who delivered their verdict after reserving the order on August 8.
Seclink Technologies had initially won the Dharavi redevelopment project bid in 2019 with a Rs 7,200 crore offer, surpassing Adani Properties’ Rs 4,539 crore bid. However, in 2022, the Maharashtra government, led by Chief Minister Eknath Shinde, introduced significant changes to the project.
One major change was the inclusion of 45 acres of railway land for slum rehabilitation, which was not part of the original proposal. To factor in the costs of acquiring this additional land, the government sought legal advice. Then Advocate General Ashutosh Kumbhakoni suggested issuing a new tender to reflect the modified project requirements.
Seclink argued that the inclusion of railway land was already accounted for in the original 2019 tender since the bid map included nearly 90 acres of railway land. The company claimed:
- The government’s reasoning for canceling the 2019 bid was baseless.
- The revised tender terms seemed deliberately designed to exclude Seclink and favor Adani Properties.
- The cancellation caused them a financial loss of Rs 8,424 crore.
Seclink sought a reversal of the government’s decision, asserting their original bid was valid and compliant with the project requirements.
The Maharashtra government defended its decision, highlighting that the new tender was a necessary step given the evolving economic conditions. The government emphasized:
- Economic changes between 2019 and 2022, including the COVID-19 pandemic, the Russia-Ukraine war, fluctuations in the Rupee-USD exchange rate, and interest rate volatility.
- A challenging investor environment with high financial risks during that period.
- The need to revise project terms to ensure financial viability and alignment with the larger public interest.
The government asserted that these adjustments were not arbitrary but thoughtfully considered.
- For Seclink Technologies: Senior Advocate Virendra Tulzapurkar, along with advocates Mandar Soman, Suraj Iyer, Jenil Shah, Devendra Ailawadi, Mani Thevar, Anuj Singh, and Abhishek Karnik, instructed by Ganesh & Co.
- For the State: Senior Advocate Milind Sathe, Additional Government Pleaders Jyoti Chavan and Atul Vanarse, along with advocates Bhushan Deshmukh and Aditya Mhase.
- For Adani Properties: Senior Advocates Ravindra Kadam, Vikram Nankani, Zal Andhyarujina, along with advocates Rohan Kadam, Karan Bhide, Rati Patni, Kathleen Lobo, and Vikrant Dere, instructed by Wadia Ghandy & Co.
The Bombay High Court upheld the Maharashtra government’s decision, dismissing Seclink’s petition.
The court recognized the government’s need to adapt to the changing economic landscape and ensure the project’s feasibility.
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