Mumbai: Controversy over Dharavi Redevelopment Project seems to be deepening further as the state government recently issued a notification to bring in changes in the Development Control Rules (DCR) which has allowed 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% of their required TDR from DRP only.
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The decision triggered a sharp reaction from Congress MLA and party’s Mumbai unit president Varsha Gaikwad who accused the Maharashtra government of awarding the Dharavi Redevelopment Project to Adani’s conglomerate as a ‘Diwali gift’. Gaikwad had earlier alleged a Transferable Development Rights (TDR) scam in the project to benefit the Adani group, which will be carrying out one of the biggest redevelopment projects in the country.
The Urban Development Department of the state government through a notification modified the rules. As per the existing rules, there is a provision of indexation for using TDR which means that there would not be any cap on area-specific use of the TDR. For instance, if 1,000 square feet of TDR is generated from a specific project, the same quantum is not allowed to be used in plush markets like south Mumbai and only 100 square feet of it is allowed to be used.
The modification of notification means there will be an equal quantum of generated TDR available for use. In short, the total area generated out of the TDR could be utilised now in areas like south Mumbai, Bandra, Juhu, Vile Parle, where real estate is costlier.
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The notification has provision which makes it mandatory for the builders in Mumbai to buy first 40% of their required TDR from the Dharavi Project before utilising other TDR. This provision gives Adani a big readymade market for the TDR which will be generated from the Dharavi Project. The notification also allows Adani to charge up to 90 % of the ready reckoner value of the receiving plot as the TDR rate.
“The state government in its tender documents for the Dharavi Project had assured the concession in indexation. However, as there was no provision for concession in indexation earlier, the UDD had expressed the reservation on giving the concession in indexation. UDD had also expressed reservations about issuing an order regarding first buying the TDR generated from Dharavi before the project work starts. Now the state government has made provision through these notifications’ necessary changes in current rules,’ said a government official requesting anonymity.
“As per tender documents, the first 50% TDR was mandatory to buy from the Dharavi Project. But now it has reduced to 40% as per this notification which means there is a cut of 10%. While reducing the mandatory saleable quantum of TDR UDD has also assured that it will be applicable only after the generation of TDR and as per the available quantity only.” said the officer.
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The notification has triggered controversy as Congress leaders have criticised the chief minister Eknath Shinde who is also in charge of the Urban Development Department.
“This corrupt government just gave PM Modi’s closest friend Gautam Adani a Diwali gift. The Shinde government has gifted Mumbai’s real estate market to Adani’s conglomerate. The notification proposes mandatory for all real estate constructions in Mumbai (where TDR is admissible) to purchase at least 40% of their TDR requirements at exorbitant rates from the Dharavi Redevelopment Project, where Adani Properties Pvt. Ltd. is the lead partner to facilitate Adani group’s takeover of Mumbai’s TDR market. Concession in Indexation is also a special case. Is this not unfair practice?” said Varsha Gaikwad. She also alleged that these changes in rules through a notification shall make redevelopments being carried out by smaller developers unviable.
Despite repeated attempts, Dharavi Redevelopment Project Pvt Ltd could not be reached for their reaction to this development.
One of the biggest redevelopment projects in India
The Maharashtra cabinet awarded the DRP bid to Adani Realty in December 2022. Despite the pending court case in this matter, the cabinet decided to go ahead, as the Bombay high court had not ordered a stay. Bids for the DRP opened in November, and Adani Realty, with a bid of ₹5,069 crore, was declared the winner. The DLF group, another frontrunner, had submitted a bid of ₹2,025 crore.
Significantly, no other company was eligible for the final bid. In 2018-19, the Dubai-based Seclink group had emerged as the highest bidder with a bid of ₹7,200 crore. The Adani group lost to Seclink, as it had bid ₹4,500 crore. However, the bidding process was later cancelled, following which the Seclink group filed a case in the HC, challenging the government’s decision.
