'Deliberate behest of certain vested interests who hope to derail Dharavi redevelopment project': Adani Group

A day after it was reported that the Maharashtra government has relaxed norms for the Dharavi redevelopment project in Mumbai that could benefit the Adani group, the Gautam Adani-led company said that some people are trying to create a controversy around TDR generation due to their vested interests.

In a statement issued on Saturday, the company said: "It is unfortunate that some people are attempting to manufacture a controversy around TDR generation from the Dharavi Redevelopment Project (DRP). We believe this is being done at the deliberate behest of certain vested interests who hope to derail or, at least delay, the long cherished dreams of Dharavi’s people for a better future."

It is to be noted that Gautam Adani-led Adani Group’s firm Adani Realty won the Dharavi Redevelopment Project bid floated by the Maharashtra cabinet in December 2022. The company’s bid for the project was Rs 5,069 crore, while its closest competitor, DLF group, had submitted a bid of Rs 2,025 crore. 

It was reported on Friday that the Eknath Shinde-led Maharashtra government has tweaked the Development Control Rules (DCR) for the Dharavi Redevelopment Project, which would eventually allow the use of Transfer of Development Rights (TDR) without an indexation.

This change will give more value to the Adani group for the TDR generated from the Dharavi Redevelopment Project (DRP) and mandate all city builders to buy the first 40 per cent of their required TDR from DRP only.

Explaining its stand, Adani Group said: "Generation of TDR within the Dharavi Notified Area (DNA) was permitted since the Government Resolution (GR) of 2018. It was further modified in the GR of 2022. Both these developments happened prior to the issuance of the 2022 tender, which was won through open and fair competition. In the present, all that the government is doing is currently notifying this as a due process." 

It further added: "The GR issued before the onset of the 2018 tendering process had a provision for the sale of TDR generated from the DRP across Mumbai. The GR introduced in September 2022, before the tendering process commenced, introduced two vital changes. Importantly, these changes were available for due diligence to all the bidders. Contrary to the claim that these policy changes are going to benefit a single entity, the final notification from the government has, in fact, capped the minimum usage of TDR in other projects at 40 per cent instead of 50 per cent, as mentioned in the September 2022 GR." 

It further said that the government notification of November 7, 2023,  puts a cap on the pricing of TDR. "While there was no restriction earlier on the sale price of the TDR generated from the DNA, the government has now restricted the maximum sale price of TDR to be 90% of the ready reckoner rate of receiving plots to avoid any arbitrary pricing of TDR. To make the TDR process fully transparent, the Municipal Corporation of Greater Mumbai will develop a portal where TDR generated from the project will be uploaded and updated in real-time."

It added: "The baseless and malicious allegations of 'tweaking' and amendments to suit selected bidders’ do not do justice to the regulatory transparency of the process. Alleging favouritism of any kind is a mischievous ploy to muddy the waters and divert attention from our goal of transformational urban management." 

The matter became a political issue after Congress issued a statement that accusing the BJP of relaxing norms for the Dharavi redevelopment project in Mumbai to benefit the Adani group. 

In a statement, Congress general secretary (communication) Jairam Ramesh alleged that the Maharashtra Urban Development Department had been “compelled” to change rules.

“It is now reported that the Maharashtra Urban Development Department — which had originally expressed its reservations about relaxing the rules — has been compelled to issue a notification that removes the provision of indexation in Dharavi’s real estate TDR and made it mandatory for all Mumbai builders to buy the first 40% of their TDRs from Adani,” Ramesh said.

“This has the effect of greatly increasing the value of TDRs accruing to Adani — and Adani alone — from the Dharavi project,” he added.

Varsha Gaikwad, Congress MLA from Dharavi, warned that real estate prices in Mumbai could surge once TDR from the Dharavi revamp project becomes available.

She told India Today: "There is no TDR on slum redevelopment. But in this case rules are being changed. TDR is generated and it's mandatory for builders to buy Dharavi redevelopment project TDR. There is no indexation for TDR of this project and a developer will have to buy the TDR at 90% of the ready reckoner rate of the receiving plot. It means if the project will be at areas like Malabar Hill where RR is high than price paid for TDR will be higher. Developers will pass on this extra cost to buyers and prices for homes in Mumbai will increase.”

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