Indian billionaire Gautam Adani’s plan to redevelop Dharavi, the biggest slum in Asia, housing one million people is spurring resident’s worries on his capacity to deliver it amid high profile financial setbacks. These worries are further fuelled by Hindenburg’s report. Several allegations are made that billionaire Adani is meted out by favorable treatment by PM Modi’s allies. Thus,questions have been raised on the transparency and fairness of the redevelopment effort.
Dharavi Slum:
The Dharavi slum is about three-quarters the size of New York’s Central Park. It is known for producing leather goods. Featured in Danny Boyle’s Oscar winning movie `Slumdog Millionaire”, Dharavir’s open sewers, and shared toilets, close to Mumbai’s international airport and high rising foreign companies, draws in sharp contrast to India’s development boom.
Dharavi Redevelopment plan:
Adani placed the highest bid in 2024 of $614 million and got the tender for the Dharavi Redevelopment plan from Maharashtra state government in July, 2024.
Image source: Business Standard
Adani Group’s plan is to demolish areas that are described as “unhygienic and deplorable” conditions. They aim to build new towers in place of those areas to house the residents and their businesses. According to Consultancy Liases Foras estimates, Adani’s investment may rise up to $12 billion on remodeling of Dharavi. In lieu of it, Adani group would get development rights that could yield them a revenue of up to $24 billion.
Dharavi residents who have been living before 2000, largely speaking ground-floor residents, are entitled to get free homes with the redevelopment scheme. About 700,000 people who live on mezzanine and above levels are deemed ineligible by the government and would be given apartments up to 10 kilometers away, which they claim may require them to pay greater rent up front.
Trouble in Paradise for Adani:
The renovation, scheduled to begin in late September, comes during a trying moment for Adani. Up until January, the businessman held the third-richest position in the world. However, despite his protestations, charges of wrongdoing by American short seller Hindenburg caused $150 billion off his group’s market valuations.
A fresh threat to Adani’s plan has been added in the face of a legal challenge from rival bidder SecLink Technologies Corporation. According to the court papers reviewed by Reuters,the Dubai-based consortium, that claims to be backed by Bahrain’s royal family, alleges that the Maharashtra government improperly canceled an initial 2018 tender for which SecLink placed the top bid and relaunched the process with new terms in 2022 so that Adani might win.
The lawsuit is being contested by the present state government, which is led by Modi’s BJP and its supporters. A Mumbai court granted SecLink’s request to include Adani in its lawsuit last month, compelling the company to present a defense to the justices.The eight-member consortium claimed that Maharashtra’s modified bidding procedure was “politically motivated” and “tailor made to suit” Adani Group in an 809-page file last month suing Adani and the state, as reported by Reuters.
In a hearing in August, Adani denied SecLink’s allegations in a non-public submission to the judges. He argued that the case should be dismissed on the grounds of the interest of development.
Maharashtra government in a submission states that the allegations made by the SecLink were “baseless” and claims that officials have followed “proper process” in canceling the earlier tender. The reason given for the restart of a new tender was because the government had added another land parcel to the project after the 2018 tender had closed. Rest of the parties are yet to respond to this claim.
The sword looms over Dharavi:
The future of Dharavi is uncertain as the start date for reconstruction draws near. The locals are concerned as they struggle with questions regarding the project’s viability, their own housing chances, and the transparency of the bidding process.
While the future appears promising for many, there is also cause for concern; many people are aware of the intricate interactions between politics, commerce, and community welfare in this crucial alteration of their lives and surroundings.
