Adani's bid to remake Mumbai slum spurs residents' doubts, favouritism claims

Indian billionaire Gautam Adani’s attempt to relocate a million people from one of Asia’s largest slums has raised concerns among residents. These concerns stem from Adani’s recent financial setbacks and allegations of preferential treatment by Prime Minister Narendra Modi’s allies. The Dharavi slum, immortalized in the film “Slumdog Millionaire,” is known for its open sewers and communal toilets, which contrast with the development boom seen in the rest of India.

Adani has been selected by the Maharashtra state government to renovate Dharavi with a $614 million contract. Adani Group plans to demolish the existing “unhygienic, deplorable” conditions and construct new towers on state-owned land to provide housing and business spaces for residents. The estimated investment for the project is up to $12 billion, with potential revenues of $24 billion.

Only residents who had been living in Dharavi before 2000 will receive free homes within the redeveloped area. Around 700,000 inhabitants living on higher floors are deemed ineligible by the government and may be offered units up to 10 kilometers away, potentially requiring additional upfront costs or higher rents.

Adani’s plan to redevelop Dharavi comes at a challenging time for the tycoon. Allegations by U.S. short seller Hindenburg caused a $150 billion drop in his group’s market value, eroding his ranking as the third-richest person globally. Some Dharavi residents express concerns about Adani’s financial troubles.

A potential hurdle for Adani’s plans is a legal challenge from competitor SecLink Technologies Corporation. The consortium alleges that the Maharashtra government improperly canceled the original tender in 2018 and restarted the process with revised terms in 2022 to favor Adani. SecLink claims that the bidding process modifications were politically motivated.

Both Adani and the Maharashtra government deny these allegations, with Adani arguing that the case should be dismissed to prioritize development. The legal dispute is ongoing.

Adani and Prime Minister Modi face ongoing allegations of close relations and favorable treatment, which the opposition Congress party uses to criticize them. The Dharavi project has become a political controversy due to Adani’s involvement.

Hindenburg’s report and subsequent regulatory scrutiny have created mistrust among some Dharavi residents toward Adani. Local representatives and businesses express doubt about Adani’s image and ability to see the project through.

Adani acknowledges the immense challenges associated with rebuilding Dharavi but remains committed to transforming the area into a vibrant community. The plan includes larger apartments and the use of high-quality materials.

The Dharavi redevelopment authority aims to minimize disruptions caused by the project. However, residents like Mohammad Hasmat Ullah, who runs a business on an upper floor and doesn’t qualify for a free replacement, remain anxious about being forced out.