Supreme Court declines to halt Dharavi Redevelopment Project amid legal challenge

The Supreme Court has refused to pause construction on the Dharavi Redevelopment Project (DRP), dismissing an appeal by UAE-based Seclink Technologies Corporation.

The ruling upholds the Bombay High Court’s decision in favour of the Adani Group, which was awarded the redevelopment contract.

During the hearing, the court noted that work on the project had already commenced, including the demolition of railway quarters. Seclink had contested the Maharashtra government’s decision to award the project to Adani Properties Limited after canceling Seclink’s previous bid.

Despite the challenge, the Supreme Court did not interfere with the ongoing construction but directed that all financial transactions related to the project be processed through a single escrow account.

Chief Justice of India Sanjiv Khanna, heading the bench alongside Justice PV Sanjay Kumar, observed that the Bombay High Court’s decision was reasonable, as the project would also include the redevelopment of railway infrastructure. The court has issued notices to the Maharashtra government and Adani Properties and scheduled the next hearing for May 25.

Seclink, which had initially bid Rs 7,200 crore for the redevelopment in 2019, informed the Supreme Court that it was willing to increase its offer by 20 percent. The bench instructed the company to submit an affidavit outlining the revised bid.

The dispute traces back to December 2024, when the Bombay High Court upheld the Maharashtra government’s decision to cancel Seclink’s 2019 bid and initiate a fresh tender in 2022, ultimately awarding the contract to the Adani Group.

The government defended its move, citing significant economic changes between 2019 and 2022, including the impact of the COVID-19 pandemic, geopolitical tensions such as the Russia-Ukraine war, currency fluctuations, and rising interest rates.

Dharavi is one of Asia’s largest informal settlements.