According to Maharashtra Vice Chief Minister Devendra Fadnavis, the Adani group, which won the tender for the redevelopment of Dharavi, will only receive the letter of intent (LoI) after demonstrating financial capacity to carry out the project.
He was responding to Congresswoman MLA Varsha Gaikwad's concerns about the project in the wake of Hindenburg Research's allegations of stock manipulation against the Adani group. Gaikwad also inquired whether a new tender would be issued for the project. Fadnavis claimed that the tendering process was open and transparent.
A global tender was held and three parties responded. He stated that the bids of the two parties were correct and that the contract was awarded to the highest bidder among them. "So it's incorrect to say that the process was flawed. The LoI has not yet been issued. This is because it is only issued after all departments have made that decision. "There is one decision (which has yet to be made) from the Urban Development Department after which the LoI will be awarded," Fadnavis said.
The Adani group was the highest bidder for the 259-acre Dharavi redevelopment project in November 2021.
DLF's bid of Rs 20.25 crore was outbid by the group bid of Rs 5,069 crore.
The tender states that the money will be paid in advance and that the winning company will provide a bank guarantee, Fadnavis said.
"Before issuing the LOI, they (the company which has won the tender) have to show whether they are financially capable, they have to show whether the bank is ready to give them money, and deposit a certain amount in a dedicated account," the deputy CM said. "If they comply with everything, they can execute the project....If they do not, they will not get the LoI," he added. Dharavi, known as Asia's biggest slum cluster, is located in central Mumbai. It is also a hub of small-scale, unorganised industries that manufacture leather items, footwear and clothes among other things.