No need to take back Dharavi project from Adani Group, says Fadnavis | Mumbai news - Hindustan Times
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No need to take back Dharavi project from Adani Group, says Fadnavis

By, Mumbai
Mar 21, 2023 08:10 PM IST

Deputy chief minister Devendra Fadnavis on Tuesday said the government is not going to take back the Dharavi redevelopment project from Adani Group that is allegedly in a financial stress following allegations of stock manipulation and fraud

Deputy chief minister Devendra Fadnavis on Tuesday said the government is not going to take back the Dharavi redevelopment project from Adani Group that is allegedly in a financial stress following allegations of stock manipulation and fraud.

Mumbai, India - February 22, 2023: Aerial view of Dharavi, the biggest slum, in Mumbai, India, on Wednesday, February 22, 2023. (Photo by Vijay Bate/HT Photo) (HT PHOTO)
Mumbai, India - February 22, 2023: Aerial view of Dharavi, the biggest slum, in Mumbai, India, on Wednesday, February 22, 2023. (Photo by Vijay Bate/HT Photo) (HT PHOTO)

In fact, the state is in the process of issuing letter of intent (LoI) to Adani Realty and is awaiting permission only from the urban development department in this regard, he said in the assembly.

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Fadnavis, however, said the bidder needs a strong financial standing to fulfil the tender conditions. “For instance, they would have to put an amount upfront in a dedicated account. The rest of the amount for completing the project will have to be given in the form of a bank guarantee, which means they would have to show that a bank is willing to lend them that much money.”

Congress legislator Varsha Gaikwad, who represents Dharavi, referred to the financial disclosures by the Hindenburg report and the subsequent fall in the company’s valuation. She also raised suspicions over the tendering and said fresh tenders should be floated.

In response, Fadnavis said the tendering was not faulty. “The bidder who meets the conditions will get the project and if they fail then LoI will not be given to Adani Group.”

Gaikwad also said after decades the people started believing that the redevelopment project would finally take off but now, they are doubtful if Adani Group can execute it.

Fadnavis replied: “I want to make it clear that there is no reason to speculate as the state will not see the face of an individual while awarding a project. It will be done as per the rules.”

The deputy CM also said the project became feasible only after the central government approved transferring railways land for its execution. “Now the people will not have to be shifted outside the area.”

It is significant to mention that the Supreme Court on March 2 ordered formation of an experts’ committee headed by retired judge AM Sapre to probe the Adani-Hindenburg episode. It also sought a status report from Securities and Exchange Board of India on its investigation into the matter within two months.

In November 2022, Adani Realty won a global tender to redevelop Dharavi slums with a bid of 5,069 crore.

The project involves rehabilitation of nearly 10 lakh people, including 60,000 residential and 13,000 commercial dwellers, and redevelopment of 240 hectares of prime land over a 17-year span. A slew of concessions has been given to the developer such as 4 FSI and transferable development rights.

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  • ABOUT THE AUTHOR
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    Faisal is with the political team and covers state administration and state politics. He also covers NCP.

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