The Congress on Saturday attacked Prime Minister Narendra Modi over the Maharashtra government formally awarding the Dharavi Redevelopment project to an Adani Group firm, alleging that BJP state governments have been reduced to “ATM machines for his cronies.”
A resolution released on Thursday by the Housing Development department of the Maharashtra government said the state cabinet had approved the outcome of the bidding process on December 22, 2022, following which the rights were awarded. Adani Properties will be the lead partner in the project for which a special purpose vehicle will be formed.
Reacting to the development, Congress general secretary Jairam Ramesh said Devendra Fadnavis’ last act before handing over the housing department on Friday was to formally approve the Adani Group’s ”shady takeover” of the Rs 5,069 crore Dharavi redevelopment project, which involves 600 acres of prime Mumbai land.
The project had originally been awarded to a different bidder, he said. ”After the original tender was cancelled due to a dispute, the Shinde-Fadnavis government performed amazing acrobatics to change the tender conditions to ensure that PM Modi’s closest friend was the only feasible winner.
”This included raising the minimum net worth needed to win the bid from Rs 10,000 crore to Rs 20,000 crore to exclude the previous winner and to allow payment in installments that eased the path for the cash-strapped Adani Group,” Ramesh said.
He also claimed that despite objections raised by officers of the Urban Development department, the government resolution notifying the permissions of TDRs (Transfer of Development Rights) to be sold with no indexation on the pricing, as well as a mandatory 50 per cent buying of TDR from the Dharavi Special Purpose Vehicle, will ensure a ”windfall” funding for Adani saving the cash-strapped group from putting any capital into the project.
“This is yet another example of how PM Modi has reduced his state governments to ATM machines for his cronies. Even the land and livelihoods of Mumbai’s slum-dwellers won’t be spared by the Modani Mega Scam,” the Congress general secretary said.
The Dharavi project, which reportedly has a revenue potential of Rs 20,000 crore, involves rebuilding the Dharavi slum in central Mumbai, located near the BKC business district.
The project was awarded to the Adani Properties November last year through a competitive bidding which also saw realty major DLF and Naman Developers competing. The project, which stands to bring windfall gains to the winning bidder in sale of lakhs of square feet of residential and commercial space in central Mumbai, was in limbo for many years. Eight bidders, including entities from South Korea and UAE, had attended a pre-bid meet last October and three of them actually bid for the project.
The state government had sought consolidated net worth of a minimum of Rs 20,000 crore as a qualifying criterion for bidders. The winning bidder is required to take care of rehabilitation, renewal, amenities, and infrastructure components.
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