MUMBAI: The Dharavi Redevelopment Project, one of the most ambitious urban renewal initiatives in the world, is now at the center of a growing political storm.
Maharashtra Deputy Chief Minister Devendra Fadnavis has warned that the state government may revoke the redevelopment contract from the Adani Group, a company tasked with transforming Dharavi’s dense urban sprawl, if it fails to adhere to government instructions.
This warning follows allegations from opposition leaders that the project is marred by irregularities and could become one of the largest scams in India’s real estate history.
Speaking at the India Today Conclave, Fadnavis asserted that the project is under the complete control of the state government, and that the Adani Group, which holds a majority 80 per cent stake in Dharavi Redevelopment Project Private Ltd (DRPPL), will have to follow development rules set by the government.
Warning to Adani
“If Adani does not comply, we will take the contract back,” he declared. He also dismissed the opposition’s claims as politically motivated and based on a misunderstanding of the project’s governance framework.
The controversy gained traction after Mumbai Congress chief and Lok Sabha MP Varsha Gaikwad alleged that the project’s structure disproportionately favors the Adani Group, leaving the state with only a 20 per cent stake in DRPPL.
Gaikwad, a former Dharavi MLA, called the project a “real estate scam” and accused the government of enabling the Adani Group to profit excessively from the redevelopment at the expense of transparency and public interest.
Transferable Development Rights
In response, Fadnavis stressed that all work on the project is subject to the state’s Urban Development Department, which will approve the development control rules.
Only after this approval can any actual redevelopment begin. The Deputy CM also pointed out that the previous Uddhav Thackeray-led government had failed to impose limits on the Transferable Development Rights (TDR) related to the project.
This could have led to unchecked profits for the developers, but Fadnavis’ government intervened by capping TDR at 90 per cent of the ready reckoner rates, ensuring greater control and fairness in the process.
Fadnavis highlighted other transparency measures introduced under his administration, including a digital platform where the details of available TDRs are displayed, making the process more open and accountable.
Nevertheless, the opposition remains unconvinced, continuing to allege that the Adani Group has been given an undue advantage, making the project a focal point for political conflict in Maharashtra.
Shadow over project
With these allegations and warnings casting a shadow over the future of the Dharavi redevelopment, the next steps of both the state government and the Adani Group will be closely watched.
The project’s success, or failure, could have lasting implications not only for Dharavi’s residents but also for the credibility of the state’s redevelopment policies.
This longer introduction delves deeper into the key points, adding context and background to the controversy surrounding the project, while still maintaining a focus on the challenges facing the Adani Group.
