SC declines to halt Adani Group’s Dharavi redevelopment work, asks Seclink to submit latest bid on record

The Supreme Court refused to grant an interim stay on the Dharavi Slum Rehabilitation project being carried out by the Adani Group, as sought by a company that lost out on the contract.

A bench led by Chief Justice Sanjiv Khanna heard a plea filed by Dubai-based Seclink Technology Corporation, challenging the award of the project to Adani. However, the court agreed on Friday to examine Seclink’s petition and issued notices to the Maharashtra government and the Adani Group.

The top court refused to halt the ongoing work at the project site after senior advocate Mukul Rohatgi, representing the Adani Group, said that construction had already started. He said that Adani had employed over 2,000 workers, invested significant funds, procured construction equipment worth crores of rupees, and initiated the demolition of railway quarters on the site.

The court directed the Adani Group to channel all project-related payments through a single escrow account, with proper documentation, including invoices and brochures. Any financial transactions related to the project must be routed through this designated account.

Seclink’s bid

Senior advocate C. Aryama Sundaram, representing Seclink, argued that the company was willing to increase its bid by 20%, proposing a revised bid of ₹8,640 crore—substantially higher than Adani’s base bid of ₹5,069 crore.

He highlighted that Seclink’s ₹8,640 crore bid excluded an upfront payment of ₹1,000 crore to the Indian Railways and an indemnity amount of ₹2,800 crore. This, according to Seclink, made its overall financial commitment greater than Adani’s total bid of ₹8,869 crore.

The Supreme Court directed Seclink to submit an official undertaking through an affidavit confirming its latest financial offer.

The case will be heard next in May, when the court is likely to examine the latest bid offer proposed by Seclink.

Seclink had previously challenged the project award in the Bombay High Court, which, on December 20, upheld the Maharashtra State Housing Department’s decision to grant the Dharavi Slum Rehabilitation Project to Adani Properties Pvt Ltd.

The high court dismissed Seclink’s plea, clearing the way for Adani to spearhead the redevelopment of the 259-hectare slum in central Mumbai—one of Asia’s largest.

Seclink, which lost the bid in 2022, argued that its initial ₹7,200 crore bid was higher and more deserving than Adani’s ₹5,069 crore offer. The company alleged that the Maharashtra government unfairly scrapped the original tender process and issued a fresh one, tilting the competition in Adani’s favour.

However, the Bombay High Court ruled that Seclink’s claims lacked merit. It rejected the argument that the revised tender conditions were designed to exclude Seclink and benefit Adani.

The Dharavi redevelopment initiative gained momentum in 2016 when the BJP-Shiv Sena government, led by then-chief minister Devendra Fadnavis, prepared a detailed project report. In 2018, the administration approved a new project model, setting the stage for fresh bidding.

Seclink was initially declared the highest bidder in January 2019. However, in November 2020, the Maharashtra government scrapped the tender, citing modifications in project requirements.

In November 2022, Adani Properties won the redevelopment contract with a ₹5,069 crore bid, along with a mandatory ₹2,800 crore payment to the Railway Land Development Authority, bringing the total financial commitment to ₹7,869 crore—surpassing Seclink’s original bid.

Dissatisfied with the outcome, Seclink mounted a legal challenge in the Bombay High Court in 2023. The company reiterated that its ₹7,200 crore bid was higher and that the government’s decision to cancel the initial tender in 2020 was unfair and ultimately benefitted Adani.

The Slum Rehabilitation Authority countered that the 2022 tender process was justified because it included a 45-acre replacement for railway land, changing the scope of the project from the original tender. While Adani qualified under the revised terms, Seclink claimed there were no substantial differences between the old and new tenders.

Revised terms

The Maharashtra government defended the fresh bidding process, calling it transparent and inclusive. Officials pointed out that the revised project terms addressed the rehabilitation of about 700,000 non-eligible slum dwellers—an aspect missing in the original tender. The new tender also required the ₹2,800 crore payment for incorporating railway land into the project.

The government further argued that Seclink opted not to participate in the 2022 bidding process and later raised baseless objections. 

The Bombay High Court observed that if Seclink had concerns about the fresh bid conditions, it should have challenged them before the financial bids were opened. Since it failed to do so, the court deemed its challenge inadmissible, prompting Seclink to approach the Supreme Court.