The Supreme Court Today (March 7) intervened in Dharavi’s redevelopment dispute, as UAE-based Seclink challenges the Maharashtra government’s move to award the Rs 7,200 crore project to Adani. Seclink now promises a 20% higher bid.
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NEW DELHI: The Supreme Court on Friday issued a notice to the Maharashtra government and Adani Properties on a petition filed by UAE-based Seclink Technologies. The company has challenged the Maharashtra government’s decision to cancel its earlier bid from 2019 for redeveloping Dharavi slums.
The Maharashtra government had cancelled Seclink’s bid and invited a new tender in 2022, which was awarded to Adani.
The Supreme Court bench, led by Chief Justice Sanjiv Khanna and Justice Sanjay Kumar, agreed to hear Seclink’s petition after the company said it is ready to increase its original offer of Rs 7,200 crore by another 20 percent.
The Court asked Seclink to submit a detailed affidavit about its revised offer and fixed the next hearing on May 25.
“Now a statement is made that they shall shell out a higher amount than the biggest bidder. All other conditions which the highest bidder has agreed which means Rs 1,000 crore towards lease and Rs 2,800 crore toward indemnity amount. Petitioner shall also fulfill all other obligations. Let fresh affidavit be filed,”
-the Court recorded in the order.
Earlier, on December 20, 2024, the Bombay High Court had supported the Maharashtra government’s decision to cancel Seclink’s original bid and issue a fresh tender to Adani. After losing in the High Court, Seclink approached the Supreme Court.
In the Supreme Court, Senior Advocate Aryama Sundaram represented Seclink Technologies.
Solicitor General Tushar Mehta argued for the Maharashtra government, and Senior Advocate Mukul Rohatgi appeared for Adani.
During the hearing, Mukul Rohatgi informed the Court that Adani had already purchased equipment worth hundreds of crores. After hearing this, the Court directed Adani to maintain an escrow account for handling all financial payments related to the project.
However, the Supreme Court refused a verbal request by Seclink to pause the project until a final decision is made.
Initially, Seclink had moved the Bombay High Court challenging the Maharashtra government’s decision to cancel its winning bid of Rs 7,200 crore made in 2019 for the redevelopment of Dharavi. The Maharashtra government had scrapped the old tender and announced a fresh tender in 2022, eventually awarding the project to Adani Infrastructure and Developers.
In 2019, Seclink had placed the highest bid of Rs 7,200 crore, beating Adani’s lower offer of Rs 4,539 crore. But in 2022, the Maharashtra government decided to include an extra 45 acres of railway land in the Dharavi redevelopment project to make the rehabilitation process easier. This additional land was not part of the initial 2019 tender.
Due to this change, the government cancelled the earlier tender from 2019 and started a fresh tender process in 2022.
The Maharashtra government defended its decision, clarifying that the fresh tender was not meant to favour any particular company. According to the government, significant economic changes happened between 2019 and 2022, making the original terms of the project unsuitable.
The government stated various reasons for modifying the tender, including the COVID-19 pandemic, the Russia-Ukraine war, changing Rupee-to-Dollar exchange rates, higher interest rates, and a difficult investment environment.
Because of these factors, the Maharashtra government argued that changing the financial terms was necessary for the project’s success. The new tender was created keeping in mind the current economic scenario and public interest.
This legal matter will next be heard on May 25.
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