The Supreme Court directed that all project payments by the Adani Group be managed through a designated escrow account.
The Supreme Court has refused to halt the ongoing redevelopment of Dharavi, Mumbai’s largest slum, a project currently being carried out by the Adani Group. The decision comes as a setback for Dubai-based Seclink Technology Corporation (STC), which had challenged the Maharashtra government’s move to award the project to Adani.
Legal battle over Dharavi Redevelopment
STC had approached the Supreme Court after the Bombay High Court dismissed its plea on 19 December 2024. The company had questioned the government’s decision to cancel its 2019 winning bid and issue a fresh tender in 2022, which was later awarded to the Adani Group. However, the Supreme Court bench, led by Chief Justice Sanjiv Khanna and Justice Sanjay Kumar, declined to issue a status quo order, noting that redevelopment work was already in progress.
Senior advocate Mukul Rohatgi, representing Adani Group, informed the court that significant investments had already been made. He stated that machinery worth crores had been deployed and that hundreds of workers were engaged in site preparation, including demolishing old railway quarters.
Court directs financial oversight
Although the Supreme Court did not stall the project, it directed the Adani Group to maintain an escrow account to ensure transparency in financial transactions. All project-related payments must be routed through this account, with proper invoices and records maintained.
STC’s counter offer rejected
During the hearing, senior advocate C Aryama Sundaram, representing STC, proposed an increase in the company’s original bid from Rs 7,200 crore to Rs 8,640 crore. The court advised STC to submit an affidavit detailing this revised offer but did not indicate any reconsideration of the awarded contract.
Earlier, the Bombay High Court had dismissed claims that the tender process was manipulated in Adani’s favour, calling such allegations “misconceived.” STC had contested the Maharashtra government’s resolution issued on 13 July 2023, which formally granted the project to Adani Properties as the lead developer. The subsequent work order was issued on 17 July 2023.
Adani’s winning bid and project scope
In November 2022, Adani Properties secured the contract to redevelop nearly 259 hectares in central Mumbai. The group emerged as the highest bidder, offering Rs 5,069 crore, with an additional Rs 2,800 crore earmarked for railway land payments. This brought the total bid amount to Rs 7,869 crore.
The Dharavi redevelopment is one of India’s most ambitious urban renewal projects, aiming to transform Asia’s largest slum into a modern residential and commercial hub. While legal challenges continue, the Supreme Court’s decision allows the work to progress under financial scrutiny.
