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Supreme Court Issues Notice on Dharavi Redevelopment Project Tender Dispute

7 Mar 2025 4:59 PM - By Shivam Y.

Supreme Court Issues Notice on Dharavi Redevelopment Project Tender Dispute

The Supreme Court has taken cognizance of a plea filed by SecLink Technologies, challenging the Bombay High Court's decision that upheld the Maharashtra Government's award of the Dharavi Slums Redevelopment Project tender to Adani Properties Pvt. Ltd.

A bench comprising Chief Justice of India Sanjiv Khanna and Justice Sanjay Kumar heard the case and issued a notice regarding the matter. The plea challenges the state government's decision to cancel the previously awarded tender to SecLink Technologies and issue a fresh one in favor of Adani Properties.

SecLink Technologies, the original highest bidder in the first tender process, has raised two primary concerns:

  1. Cancellation of the First Tender: The petitioners argue that their awarded contract was canceled due to a modification that included the development of railway land, which was not part of the initial tender conditions.
  2. Terms of the Second Tender: SecLink alleges that the new tender’s conditions were unfairly modified to exclude them from participation, thereby favoring Adani Properties.

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Supreme Court's Observations and Orders

While considering the plea, the Supreme Court issued 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."

The Court further clarified that:

"This excludes all other obligations which the highest bidder has agreed to—Rs. 1000 crores towards payment of lease and Rs. 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."

Additionally, the Supreme Court mandated that all financial transactions related to the tender must be conducted through an escrow account. The Court emphasized:

"All payments will only be done through an escrow account."

Furthermore, the Court instructed that Adani Properties must maintain proper invoicing and billing records for the execution of the contract.

Since certain demolition activities have already commenced as part of the redevelopment project, the Court ruled that:

"No special equities will be claimed by either side."

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During the hearing, Senior Advocate Aryama Sundaram, representing SecLink Technologies, argued that his client was willing to increase their bid by 20% from Rs. 7200 crores, ensuring the fulfillment of all obligations set forth in the new tender.

The Court noted two critical aspects:

  1. The financial obligations in the fresh tender are significantly higher than those in the initial tender.
  2. The new tender conditions, according to SecLink Technologies, were altered strategically to exclude them from the bidding process—a claim the High Court had not thoroughly examined.

Senior Advocate Mukul Rohatgi, appearing for Adani Properties, countered by arguing that SecLink Technologies is now barred from raising objections regarding the second tender.

Solicitor General Tushar Mehta, representing the Maharashtra Government, informed the Court that the redevelopment work has already commenced and railway quarters have been demolished as part of the project.

The Bombay High Court, in its judgment dated December 20, 2024, upheld the Maharashtra Government’s decision to award the tender to Adani Properties. A division bench comprising Chief Justice Devendra Kumar Upadhyay and Justice Amit Borkar found that the cancellation of the previous tender and the issuance of a new one were neither arbitrary nor irrational.

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Background of the Tender Process

  • 2018: The Maharashtra Government initiated the first tender process for Dharavi's redevelopment.
  • SecLink Technologies emerged as the highest bidder, quoting Rs. 7200 crores, whereas Adani Properties' bid was Rs. 4529 crores.
  • 2020: The Committee of Secretaries (CoS) of the Maharashtra Government canceled the first tender process on August 27, 2020, and issued a fresh tender, incorporating an additional 45 acres of railway land.
  • 2022: A new tender was issued with modified terms, and Adani Properties was awarded the contract with a bid of Rs. 5069 crores.

SecLink Technologies has contended that the fresh tender was specifically designed to favor Adani Properties, alleging that it was "tailor-made" to ensure their exclusion. However, the Bombay High Court ruled that the Maharashtra Government’s decision was justified in the interest of public welfare.

The High Court held that:

"The inclusion of railway land makes the project more viable and such inclusion was in public interest. The fresh tender was issued keeping such inclusion in mind."

With the Supreme Court issuing a notice in the matter, the case is set for further hearing on May 25, 2025. Until then, the project’s progress and financial transactions will remain under judicial scrutiny.

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