Mumbai’s real estate sector has always been the golden goose for many, including the city administration. The Mumbai Metropolitan Region (MMR) is the country’s most lucrative area of operations in the real estate business. Although the city’s real estate market went through a slowdown from 2016 to 2022, there has been a rebound in the past two years. It recorded 11,443 property registrations in June alone, marking a 12-year record in stamp duty collection at Rs.986 crore.
Now that the party has started, powerful lobbies are eyeing the market to make a killing at the public’s expense. The proposed Dharavi redevelopment project is the biggest example of this plan.
Dharavi is known for being Asia’s largest slum. Located at the centre of Mumbai, it has always been in the news for redevelopment. The first concrete proposal came in 2003-04 when there was a boom in the real estate market. Dharavi is also a hub of small-scale industries such as bakeries, garments, and leather and plastic industries. Redeveloping it has been the dream project of every State government in the past 20-plus years. Going beyond money, the redevelopment of Dharavi would also be a one-of-its-kind project in the history of real estate worldwide.
Dharavi’s total area is 259.54 hectares (ha), or 641 acres. Of this, the Dharavi project area is around 173.59 ha, or about 429 acres. In 2008, the State government mandated Maharashtra Social Housing and Action Legal (Mashal), an NGO, to conduct a survey to determine the number of dwellings and residents.
Mashal carried out a GIS-based biometric and socio-economic survey of Dharavi and found that there were 49,643 slum dwellers and 39,208 residential and 10,435 commercial tenements. In addition, there were 9,522 tenements in chawls (downmarket buildings with several tiny units), of which 6,981 were residential and 2,541 commercial.
Shiv Sena (UBT) supporters took out a huge rally against the Adani Group, in relation to the Dharavi project, in Mumbai on December 16, 2023. | Photo Credit: DEEPAK SALVI/ANI
The residents’ association of Dharavi claims that Mashal later revised the numbers, pegging total settlements at about 81,000. The proposed redevelopment of the area involves allotting houses or commercial places for these tenements.
In a bid to redevelop the area, the Maharashtra government floated a tender in October 2022. Adani Properties, an Adani Group entity, won the tender in which two other real estate giants, DLF and Naman Developers, participated.
Adani enters the scene
In September 2023, Adani Properties formed a joint venture called Dharavi Redevelopment Project Private Limited (DRPPL) with the Dharavi Redevelopment Project (DRP). The DRP comes under the Slum Rehabilitation Authority (SRA), which in turn falls under the Maharashtra government’s housing department. Adani Properties owns 80 per cent in DRPPL.
The SRA came into existence in 1995, although Maharashtra had passed an Act for the clearance, improvement, and redevelopment of slums in 1971 itself. It is the single-point authority on all matters—from finalising the list of tenements to issuing the letter of intent and occupancy certificates.
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DRPPL is at least the sixth attempt at redeveloping Dharavi. Before this, former Chief Minister Devendra Fadnavis’ government had completed the international tender process in 2018, which was won by Seclink Technologies Corporation of Dubai, with a Rs.7,200 crore bid. The Adani Group had also participated in the tender, and offered Rs.4,539 crore.
However, in 2022, the Maharashtra government cancelled the tender citing several factors, including the COVID-19 pandemic and the changed financial situation, and floated a fresh tender, which Adani Properties won with a bid of Rs.5,069 crore. Seclink challenged the award of the tender to the Adani Group and sought legal redress from the Bombay High Court.
Seclink controversy
In its 2018 bid, Seclink offered to redevelop Dharavi with complete rehabilitation of all the tenements on 254 ha. It had a plan to rehabilitate all slum dwellers and commercial establishments on 200 acres, with 100 acres earmarked for gardens; 300 acres were planned to be used for buildings for sale. Seclink offered 350 square feet of housing to all the residents of Dharavi. DRPPL’s plans are in sharp contrast with this.
According to conditions in the new tender, there will be eligible and ineligible categories of tenements. The eligible tenements will comprise those mapped in Mashal’s survey, about 81,000 of them, although DRPPL maintains that there are only about 64,000. This includes residential and commercial tenements in slums and in chawls.
The classification of many tenements as ineligible means that some seven lakh people residing on mezzanine and upper floors in slum structures will now get rental houses or permanent ones outside Dharavi. According to the tender document, ineligible residents will have to be accommodated in the MMR under the Prime Minister Awas Yojana (PMAY), or the affordable housing scheme. By bringing this new clause into the tender, the State government appears to have complicated the issue.
At a pottery unit inside Dharavi, one of numerous such in the locality, which is a hub for several small-scale industries. | Photo Credit: EMMANUAL YOGINI
Slamming the government for inserting this clause, Raju Korde, coordinator of Dharavi Bachao Andolan, an organisation formed by Dharavi residents, said: “The survey for the project is being conducted now. Then why is this eligibility factor included in the tender? All those who are staying in Dharavi should be eligible. A biometric survey should be done. Based on that, the list of tenements should be published. But by bringing this eligibility issue, the government has created a mess.”
Highlights
- Since the project has been deemed a vital public project and since Dharavi is a special pocket under the SRA, the extent of possible saleable area by the Adani Group is a mind-boggling 7.86 crore sq ft.
- The State government is also clearing proposals to give plots on lease to various organisations. Almost every day there are reports of preferential allotment of plots.
- Other controversies include DRPPL seeking 64 acres near the Mulund toll point and Central government giving the go-ahead for using 256 acres of salt-pan land for rehabilitation of Dharavi residents.
Rehabilitating residents
However, explaining the need for the clause, S.V.R. Srinivas, CEO of the DRP, said at a news conference: “There will be three categories in rehabilitating people. People with proof of living in Dharavi on June 1, 2000, are slated to get 350 sq ft homes within Dharavi free of cost. The second category are people who had established homes until January 1, 2011, who will get 300 sq ft homes under PMAY outside Dharavi. They will have to pay Rs.2.4 lakh for it. The third category are people whose residences exist from January 1 until the cut-off date declared by the Maharashtra government. These people will get homes on rent or under a hire purchase scheme.”
It is also being alleged that by showing those living in mezzanine or upper floors as residents, DRPPL may try to get several land pockets in Mumbai and the MMR zone allotted to it in the name of rehabilitation. Things are already moving in this direction: to rehabilitate those in ineligible tenements, DRPPL is seeking 23 land parcels across Mumbai. This has raised suspicion because in June it had sought 20 different land parcels from the State government. Within a month, that number has increased.
Sagar Deore, advocate and RTI activist, procured a list of land parcels from DRPPL in which details of the actual land sought are given for 12 of 23 locations. These 12 parcels together cover more than 500 acres. It is believed that the total land parcels sought could go up to 1,250 acres in Mumbai city. The value of such a huge chunk of land will reportedly run into several thousand crores of rupees.
“Any developer working on any project anywhere in Mumbai will first have to acquire Transfer Development Rights from DRPPL. In a way, this hands over control over all of the development in the city to the Adani Group.”
An important point to be noted is that land is being sought even before the exact number of eligible and ineligible residents is known. Deore said: “If you have not completed the survey, then how do you know that such a huge chunk of land will be required to rehabilitate the people? Mumbai’s land is very precious. If DRPPL is getting so much land from the State government, then questions will be raised.”
Srinivas of the DRP, however, said that DRPPL had not yet taken possession of even an acre of land. He said: “For the first time, even ineligible residents are getting housing under SRA in the Dharavi project. For the rehabilitation of these residents, 550 to 600 acres of land will be required because, as per density rules, it will not be possible to give them all homes in Dharavi itself. Therefore, land is being sought all over Mumbai.”
A source in the State government told Frontline that Srinivas has been told to clarify this point, adding: “As the public at large was concerned and political parties began talking about it, the government started panicking. They don’t want this to become a big issue ahead of the Assembly election.”
‘Vital public project’
The demand for land to rehabilitate ineligible tenants is being raised by terming the proposed Dharavi redevelopment as a vital public project. In Mumbai, hundreds of slum redevelopment projects are under construction, but most of them are not classified as vital public projects.
On March 15, however, the State government passed a government resolution (GR) that gave directions regarding the usage of State government land and classified the Dharavi redevelopment project as a vital public project.
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Allotting different land pockets to DRPPL becomes easy for the government with this GR. Another important point with respect to vital public projects is that the authority concerned is supposed to ensure more benefits to people affected by the project. In Mumbai, if any home is razed for a vital public project, the tenants get 35 per cent extra area for a commercial or residential property as part of rehabilitation.
In the case of Dharavi, if a resident is getting 350 sq ft, then the people relocated outside should get more.
DRPPL has said that since those who would be rehabilitated outside Dharavi belong to the ineligible category, there is no need to give them the benefits of a vital public project. But this argument may not stand because the rules pertaining to rehabilitation do not change.
FSI and redevelopment
Another important point to be noted is that when the SRA came into existence in 1995, it divided Mumbai into three categories. Accordingly, redevelopers would be eligible for 0.75 times floor space index (FSI), suburban redevelopers 1, and any redeveloper of Dharavi 1.33. (FSI is the ratio of the total built-up area of a building to the total area of the plot it is built on.)
This means that with the 1.33 FSI and the 35 per cent benefit of a vital public project, the Adani Group could get to sell up to 628 sq ft of commercial area for every single 350 sq ft unit it builds in Dharavi. Given the number of eligible tenements by any calculation, the Adani Group potentially stands to sell 2.24 crore sq ft. In order to house the ineligible residents, DRPPL has already started looking for land in Mumbai. However, residents until January 1, 2011, are supposed to get 300 sq ft homes under PMAY. This means that DRPPL will execute the rehabilitation project under PMAY.
Since the project has been deemed a vital public project and since Dharavi is a special pocket under the SRA, the extent of possible saleable area by the Adani Group becomes mind-boggling. According to DRPPL’s unofficial estimate, the total number of tenements is 2.1 lakh. After accounting for the 64,000 eligible tenements, the number of units is 1.46 lakh. Taking Dharavi’s 1.33 FSI and the 35 per cent for vital public projects into account, each 300 sq ft unit will translate into 538.65 sq ft outside, or a total of 7.86 crore sq ft.
TDR controversy
Also, in November 2023, a controversial notification by the State government came to light. It required all builders in the city to buy 40 per cent of the Transfer of Development Rights (TDR) from the Dharavi project. (DRPPL later clarified that the TDR notification was issued before the Dharavi tender of 2022 was floated.)
This means that any developer working on any project anywhere in Mumbai will first have to acquire TDR from DRPPL. In a way, this hands over control over all of the development in the city to DRPPL and, hence, to the Adani Group. The city’s builders and all the opposition leaders are fiercely opposing this.
“A 21-acre land parcel in Kurla belonging to the Maharashtra State government’s Dairy Development Department is now in the eye of a storm after the department allotted it to DRPPL.”
Uddhav Thackeray, former Chief Minister and leader of Shiv Sena (UBT), said: “As soon as our government comes to power after elections, we will cancel this 40 per cent TDR decision. It is like mortgaging Mumbai to Adani.”
Vishwas Utagi, leader of Niwara Hakka Abhiyan, a movement on guaranteeing the right to shelter, said: “This shows how the State government is hand in glove with Adani. It issued a GR just a few days before the renewed tender process so that Adani will get all the benefits without possible future legal inquiries. This is the reason why we are demanding cancellation of the entire tender process as well as all the GRs.”
Mulund land allotment
Yet another controversy has erupted after DRPPL sought two land parcels, totalling 64 acres, near the Mulund toll point, to rehabilitate Dharavi residents. Residents of Mulund are against this proposal and even BJP leader and former MP Kirit Somaiyya is opposing it. The land pockets come under the Brihanmumbai Municipal Corporation, and BMC Commissioner Bhushan Gagrani cleared their handover to DRPPL citing Dharavi as a vital public project.
Sagar Deore, who is a resident of Mulund, said: “There is a plan to bring one lakh people here. This will increase the stress on Mulund. We are against it.”
Similarly, a 21 acre land parcel in Kurla belonging to the State government’s Dairy Development Department is now in the eye of a storm after the department allotted it to DRPPL.
Radhakrishna Vikhe Patil, the Minister in charge who also happens to be the Revenue Minister, cleared the proposal. A highly placed government source told Frontline: “The redevelopment of this Kurla dairy land could have generated Rs.16,000 crore for the State. But the land has now been given to DRPPL.”
Salt-pan land
Another controversial land allotment happened this month in the eastern suburb of the city. The real estate in question is a parcel of 283 acres of salt-pan land. In February, the State Cabinet cleared a proposal to allot the land to DRPPL for Dharavi’s rehabilitation. This was vehemently opposed by environmental activists and members of civil society.
Later, the State government backtracked and said it would not go ahead with the plan. But the real reason behind the volte-face was that the State government does not have authority over salt-pan land; it comes under the Central government. However, on August 7, the State government passed a resolution stating that it would seek Central government permission to use salt- pan land as well as land owned by the Mumbai Port Trust (MbPT) to rehabilitate people affected by the Dharavi project.
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On September 2, the Central government approved the use of 256 acres of salt-pan land for the rehabilitation of Dharavi residents. This led to strong reactions from politicians and environmental activists. Congress MP Varsha Gaikwad said: “We will protest this. If salt-pan land of Mumbai is used for residences, it will have a huge ecological impact. Mumbai will drown. This has to stop. We will not allow this loot by the BJP and Adani to happen.”
Vishwas Utagi said: “MbPT is the biggest land parcel of Mumbai. The builder’s lobby has been eyeing it for the last three decades. The way the State government has mentioned MbPT land in the Cabinet resolution raises many questions. Under the garb of rehabilitation, the government is trying to push private builders on to port trust land.”
Plots on lease
Land grab in the name of Dharavi rehabilitation is not the only heist that is taking place. The State government is also clearing proposals to give plots on lease to various organisations.
Almost every day there are reports of preferential allotment of plots. In March, it cleared a proposal to give land occupied by Wilson College Gymkhana to Jain International Organisation (JIO) on a 30-year lease. The alumni of Wilson College opposed it, and the matter is now pending with the Bombay High Court. Again, in August, the State government decided to allot a 30,000 sq m plot in Colaba to the same JIO.
On the one hand, the State government is leasing plots to various developers stating a variety of reasons. On the other hand, citing delay in SRA works, it is bringing its other corporations and agencies into real estate.
Since land is at a high premium in Mumbai, the State government, with the support of the BJP-led Central government, appears to be using the need for rehabilitation as a pretext to offer huge tracts of prime real estate to friendly private players such as the Adani Group on a platter, a move that could backfire on it in the upcoming Assembly election.
