Business News

The Dharavi Redevelopment Project has run into trouble even before it kickstarted over possession of 47.5 acres of railway land which was designated to it. The Railway Land Development Authority (RLDA), which entered into a lease agreement with the Dharavi Redevelopment Project/Slum Redevelopment Authority (DRP/SRA), has declined to allow the sub-leasing of the land, TOI reported.The land is vital to kickstart the project as the proposal is to carry out the first tranche of redevelopment on this land, the report said.The DRPPL has highlighted that DRP/SRA are state government entities, and according to RLDA regulations, they should have the authority to sub-lease the railway land either in portions to multiple third parties or entirely to a single third party.RLDA has claimed that the matter is under legal consideration but DRPPL said it has been getting the same response for the last seven months."DRP/SRA will not be able to use the land for residential purposes. Further value for commercial purposes will be very low. Only purpose it can be possibly used for are social amenities, such as crematorium and industrial sheds," TOI has quoted DRPPL as saying in its letter to the RLDA.Dharavi's Congress MLA, Varsha Gaikwad, stated that under the redevelopment process, the ownership of the land is transferred to the society."If this cannot be done, then let government put commercial or the sale component on this land. Dharavi residents cannot be short-changed," she said.Any delay in handing over the land will ‘substantially’ delay the timeline for completing the rehabilitation process within seven years, DRPPL said in its letter last month. This delay would be in breach of the MoU which was signed.The dispute is also centred around the Minutes of Meeting (MoM) of February 24, 2019. RLDA argues that the redevelopment of railway staff quarters and the relocation of the Mahim scrapyard should happen before the commencement of construction on the Dharavi redevelopment buildings. However, the DRPPL has contended that both tasks can be carried out simultaneously.DRPPL asked RLDA to consider simultaneous development, as by addition of railway land there will be a reduction in the time and cost involved.“Your non-acceptance of this point is against the principles on which the MoU and Lease deed have been signed and was decided to handover open land immediately to DRP/SRA/. Till date, you have not transferred the open land and operational land. DRP/SRA in the lease had accommodated RLDA despite delay in handover of open and operational land," it said.The RLDA, on the other hand, has pointed out that as per MoM, "Such redevelopment of existing quarters and other service building shall be completed before initiation of dismantling of existing structures on railway land." It has further said the shifting of the scrap yard is to be done by the DRP/SRA. "As soon as the set up at the new location is completed shifting of Mahim scrapyard will be initiated by the Railways," RLDA has said in its response.In November 2022, Adani Properties, a real estate development company under the Gautam Adani-led Adani Group, secured the rights to redevelop the slum as the highest bidder. An Adani Group entity holds an 80% stake in DRPPL, while the Maharashtra government owns the remaining 20%. Adani Properties with its bid worth Rs 5,069 crore had emerged as the highest bidder as against the government’s stipulated minimum investment of Rs 1,600 crore that the lead partner of the special purpose vehicle (SPV) was expected to bring in.