Dharavi Redevelopment: Dubai’s STC Challenges Adani’s Win in Supreme Court Over ‘Unfair’ Tender
A high-stakes legal battle over the redevelopment of Dharavi, one of Asia’s largest slums, has reached India’s Supreme Court. Dubai-based SecLink Technology Corporation (STC) is contesting the award of the massive project to the Adani Group, alleging the tender process was unfairly cancelled and reissued to exclude them. The case tests the principles of transparency and equal treatment in India’s public procurement.
Project Background: The Stakes of Dharavi’s Transformation
The Dharavi redevelopment project is one of India’s most ambitious urban renewal initiatives. Located in the heart of Mumbai, the 259-hectare area is a dense informal settlement home to hundreds of thousands. The project aims to transform this zone into a modern urban district, making the contract immensely valuable both commercially and strategically.
The Tender Timeline: From STC to Adani
The dispute centers on two key tender processes:
2018 Tender: The Maharashtra government initially invited bids. In 2019, STC emerged as the highest bidder with an offer of approximately Rs 7,200 crore.
Tender Cancellation: Before the contract could be finalized, the government cancelled the 2018 tender, citing a need to include additional railway land and change the project’s scope.
2022 Tender: A fresh tender was issued. In this round, Adani Properties secured the contract with a bid of about Rs 5,069 crore—significantly lower than STC’s original offer.
STC’s Legal Challenge: Allegations of Unfair Treatment
STC has mounted a vigorous legal challenge, claiming the cancellation and redesign of the tender were orchestrated to favor the Adani Group. Their core arguments include:
Violation of Fairness: STC contends the new tender criteria in 2022, concerning net-worth and consortium composition, were tailored to disqualify them, violating Article 14 of the Indian Constitution (equality before law).
Willingness to Increase Bid: To strengthen its case, STC has told the Supreme Court it is willing to raise its bid by about 20% to Rs 8,640 crore, matching the new tender’s obligations.
Court Proceedings: From Bombay High Court to Supreme Court
The legal journey has seen two key rulings:
Bombay High Court (December 2024): The court dismissed STC’s petition, ruling that the new tender was not “tailor-made” for a single bidder and upheld the award to Adani.
Supreme Court (March 2025): While refusing to stay the redevelopment work, the apex court took crucial steps. It directed the Maharashtra government and Adani to formally respond and ordered all project finances to be routed through a single, court-monitored bank account for transparency.
Why the Dharavi Legal Battle Matters
The outcome of this case has far-reaching implications:
Investor Confidence: A ruling for STC could reinforce foreign investor trust in the fairness of Indian tenders. A ruling for the state may emphasize governmental discretion in complex projects.
Urban Policy Precedent: The verdict will set a legal benchmark for how large-scale urban redevelopment contracts are handled across India, especially when multiple stakeholders like railway authorities are involved.
Project’s Future: While Adani continues work for now, a final Supreme Court verdict could potentially alter the project’s trajectory.
What’s Next in the Supreme Court
The Supreme Court has scheduled further hearings to scrutinize the complete tender documents from 2018 onwards. The court’s examination will focus on whether the cancellation of the original tender was justified or if it constituted an arbitrary act that unfairly disadvantaged STC.
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Conclusion: A Defining Case for India’s Infrastructure Growth
The Dharavi redevelopment dispute is more than a corporate contract fight; it is a defining case for India’s infrastructure future. It highlights the critical balance between expediting vital urban projects and upholding unwavering commitment to transparent and fair procurement processes. The Supreme Court’s final judgment will be closely watched by developers, policymakers, and international investors alike.
