Adani Group’s Dharavi Redevelopment Project stands to gain from Maharashtra’s announcement permitting TDR without indexation.
A notice issued by the state government to modify the Development Control Rules (DCR) enables the use of Transfer of Development Rights (TDR) without indexation. All city builders will be compelled to purchase the first 40% of their needed TDR from DRP exclusively, and the Adani Group will get a higher value for the TDR produced by the Adani Dharavi Redevelopment Project (DRP) as a result of this modification.
Dharavi is located in the middle of Mumbai on 240 acres of valuable land. In 2004, then-Congress Chief Minister Sushil Kumar Shinde publicly proposed the renovation of the area, which includes the rehabilitation of over 60,000 people and 13,000 business units in 405 sq. ft. tenements.
Adani Group’s Major Reconstruction Project and TDR Policy
There is no limitation on the usage of TDR for certain areas since indexation is already a part of the requirements for utilising TDR. Take South Mumbai as an example: even if a particular property generates 1,000 square feet of TDR, only 100 square feet may be utilised in an upscale market. The regulations were amended by the state’s Urban Development Department by official notice.
Because of the change to the notice, the amount of TDR created will be equal and usable. To summarise, the whole space that may be used for the TDR could be better put to use in more expensive real estate neighbourhoods of Mumbai, such as Bandra, Juhu, and Vile Parle.
The announcement stipulates that, before using any other TDR, builders in Mumbai must purchase 40% of their needed TDR from the Adani Dharavi Project. The Dharavi Project will produce TDR, and this clause provides Adani with a large, ready-made market for it. Adani is authorised to charge a TDR fee of up to 90% of the receiving plot’s ready reckoner value, according to the announcement.
Dharavi Project’s Indexation Concessions Under Scrutiny
The state government guaranteed indexation concessions in the Dharavi Project contract terms. Nevertheless, the UDD has previously voiced its reluctance to provide the indexation concession due to the absence of such a provision. Prior to the commencement of the project, UDD had voiced its reluctance to issue an order requiring the purchase of the TDR produced by Dharavi. The state administration has now provided the required revisions to the regulations via these notices, according to an anonymous government official.
In order to purchase from the Adani Dharavi Project, the first 50% TDR was required under the bidding documents. The notice states that it has been decreased to 40%, which translates to a 10% reduction. Additionally, UDD has guaranteed that it would only be applicable after TDR creation based on the available amount while simultaneously lowering the obligatory saleable quantum of TDR.
Adani Properties Pvt. Ltd. is the lead partner in the Dharavi Redevelopment Project, which is facilitating the Adani Group’s takeover of Mumbai’s TDR market. The notice proposes that all real estate constructions in Mumbai, where TDR is admissible, must purchase at least 40% of their TDR requirements from the project at exorbitant rates.
One of India’s Largest Urban Renewal Initiatives
In December 2022, Adani Realty was granted the DRP proposal by the Maharashtra government. The cabinet chose to go on with the proposal notwithstanding the ongoing judicial challenge since the Bombay High Court had not issued a stay. After the DRP bids were launched in November, the winner was announced as Adani Realty, with an offer of 5,069 crore rupees. The DLF group, another leading contender, lodged bids of 2,025 crore Indian rupees.
Conclusion
Finally, the participation of the Adani Group in the Dharavi Redevelopment Project exemplifies strong corporate agendas, city planning, and social effects. The conglomerate stands to gain financially from TDR, but the project’s success will depend on whether or not it brings about genuine and long-lasting change for the people of Dharavi. For the Adani Dharavi Redevelopment Project to reach its maximum potential, all parties involved must make inclusive development, community participation, and responsible urban planning their top priorities.
