Dharavi project: Old tender cancelled, fresh one issued; Maharashtra govt tells Bombay High Court

The Maharashtra government told the Bombay High Court on Friday the 2018 tender for the Dharavi redevelopment project was cancelled and a fresh tender was issued in 2022 because of several factors including the Covid19 pandemic and the UkraineRussia war that affected financial and economic affairsThe Gautam Adani Group had bagged the 2022 tender with a bid of Rs 5069 crore to redevelop an area of 259 hectaresThe governments decision to cancel the 2018 tender and issue a fresh tender in 2022 with additional conditions was challenged in the HC by UAEbased company Seclink Technologies Corporation which had emerged as the highest bidder in the earlier tender with a Rs 7200 crore bidThe state Housing Department in its affidavit filed in reply to the petition said a decision was taken to cancel the earlier tender and issue a fresh one with new conditions due to several factors adding the financial and economic state of affairs in 2019 and in 2022 were materially differentThe present economic state of affairs is materially affected by the impact of the Covid19 pandemic RussiaUkraine war uncertainty over RupeeUSD rate interest rate volatility and overall highrisk perception of common investor the affidavit saidHence the government took a bonafide decision after obtaining legal advice to cancel the tender and float a new tender in public interestThe first tender for the redevelopment project was issued in November 2018 and bids were opened in March 2019 In the same month an additional 45 acres was made available to the government by the Railways for the redevelopment project the affidavit saidAlso Read Court lists case for hearing on arguments on charges against Aftab PoonawalaThe Housing Departments affidavit claimed there was no formation of contract between the government and the petitioner company and hence it company has no legal rightThe petitioner has no vested right to get an award in a tender process Any person who submits a bid can only legitimately expect his bid is considered in a nonarbitrary and transparent manner No person has a right to do business with the government as a matter of right it saidThe affidavit said the first tender dated 28 November 2018 was cancelled by a government resolution GR dated November 5 2020 as there was material change in the tender condition after the bid due dateThe affidavit also termed the petitioners allegations of the government having acted arbitrarily to favour the selected bidder Adani as vague and ambiguous adding the old tender and the new one were different and could not be comparedIn the new tender the bids were to be submitted afresh and the petitioner could have taken part as there was no question of excluding anyones participation it saidSenior counsel Abhinav Chandrachud and advocates Suresh Iyer and Jenil Shah appearing for the petitioner company argued it had bid Rs 7200 crore while the highest bid in the second tender Adani was Rs 5069 croreA division bench of Acting Chief Justice S V Gangapurwala and Justice Sandeep Marne on Friday said it would hear the plea on March 14This story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever