Supreme Court Declines Stay on Dharavi Project, Directs Adani Group To Maintain Separate Account for Transactions

The Supreme Court declined to impose a stay on the Dharavi Redevelopment Project on March 7. This project is undertaken by the Adani Group.

The ruling comes after Dubai-based Seclink Technologies Corp filed a lawsuit against the Maharashtra government for awarding the project, which is regarded as Asia's largest urban redevelopment project, to the Adani Group company.

All significant parties, including the Maharashtra government, the winning bidder Adani Properties, and Seclink Technologies, which has been contesting the project allocation, have received notices from the top court.

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Seclink had previously argued that its bid was better than Adani's in an appeal to the Bombay High Court. But in December 2024, the High Court rejected Seclink's argument, holding that the petition was without substance and that the government's right to choose bids should not be compromised.

The Bench, presided over by Chief Justice Sanjiv Khanna, requested an assurance from Seclink that its bid of Rs 8,640 crore was much greater than Adani's bid of Rs 5,069 crore in the most recent proceedings. The court ordered Seclink to carry out all of the commitments Adani had made, including paying the Railways Rs 1,000 crore for the lease, paying Rs 2,800 crore for indemnification, and building 812 railway cottages.

Although construction and demolition work has already begun, the apex court also ordered Adani Group to keep a separate bank account for all project-related transactions, stating that financial records, including invoices, must adhere to the Income Tax Act and applicable regulations. The court also made it clear that no special equity claims would be considered and that the final project award is still contingent on the outcome of the appeal. The court also ordered that all project-related documents be submitted for review and set the next hearing date for May 25, 2025.