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Informist, Friday, Mar. 7, 2025

 

--SC notice to Adani Properties, Maharashtra on SecLink Tech plea 

--CONTEXT: Plea vs HC OK to award Dharavi redevelopment to Adani Properties 

--SC: No stay on Dharavi redevelopment project awarded to Adani Properties 

 

NEW DELHI – The Supreme Court on Friday refused to stay the project to redevelop Mumbai's Dharavi slum, which was awarded by the Maharashtra government to successful bidder Adani Properties Pvt. Ltd. The apex court issued notices to the Adani group company, the state government and others on a petition by SecLink Technologies Corp. challenging the state government's award of the project to Adani Properties. 

 

The bench led by Chief Justice of India Sanjiv Khanna said SecLink Technologies Corp. was ready to offer INR 86.40 billion, which was substantially more than the offer of INR 50.69 billion by Adani Properties. However, the apex court clarified that SecLink Technologies Corp's bid excluded all obligations which Adani Properties had agreed to take, which was INR 10 billion of upfront payment towards lease and also indemnity amount of INR 28 billion. SecLink Technologies Corp had undertaken to fulfill all other obligations, the top court said, adding that the petitioner would file an affidavit to that effect. 

 

As the matter is subjudice, Adani Properties will make payment towards development of the project only through one account. "We have passed this said order as it is stated that the work has already commenced and some quarters etc. have been demolished," the top court said. "We have clarified no special equities will be claimed by either side," the court said, adding that this would be subject to the award of the contract. 

 

The top court said that there were two issues that arose in the case. The first is regarding cancellation of the first contract, the apex court said, adding that it agreed with the Bombay High Court on thi, since it was realised that the railway line would also be developed and be included in the contract. The second point is that conditions were tweaked that did not allow SecLink Technologies to go through despite it offering more than Adani Properties, the court said. The top court will now hear the case in the week commencing May 25. 

 

On Dec. 20, the Bombay High Court had upheld the Maharashtra government's award of the project to redevelop Mumbai's Dharavi slum to Adani Properties Pvt. Ltd and rejected SecLink Technologies' argument that the tender conditions were tailor-made to suit a particular bidder.  

 

"As far as the submissions made on behalf of the petitioner that tender conditions were tailor-made to suit a particular tenderer, we may observe that in response to the fresh tender three bidders had participated out of which two bids were found to be technically qualified," the high court said. At least two bidders fulfilled the technical conditions and, therefore, it couldn't be said that the tender conditions were tailored to suit one bidder, the high court had said. It had also upheld the cancellation of the earlier tender process initiated in 2018, and the state government's move to initiate a fresh tender for redevelopment of the Dharavi notified area. 

 

SecLink Technologies, a company incorporated in the Republic of Seychelles, had challenged the validity of a decision by a committee of secretaries of the Maharashtra government to cancel the tender process initiated in 2018 for the project. The tender was to select a lead partner for redevelopment of the notified area.

 

After cancellation of the earlier tender process, the state government's housing department issued a resolution in 2022, whereby approval was accorded to a fresh tender process. At INR 50.69 billion, the Adani Group company's bid emerged as the highest for the 259-hectare Dharavi redevelopment project. Thereafter, the petitioner challenged the decision taken by the Maharashtra Cabinet to select Adani Properties for implementation of the project.

 

The petitioner said the reasons given to cancel the earlier tender process were not sustainable, and the cancellation was done for extraneous reasons and hence "arbitrary and irrational" and violative of Article 14 of the Constitution.

 

The petitioner said the re-tender process defeated public interest and the conditions in the new tender were created to favour other bidders to defeat its right and that of other prospective bidders to participate in the process. Similarly, the financial eligibility criteria and technical eligibility criteria were also modified, which resulted in deliberate narrowing of participation, the petitioner said.  End

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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