Adani's Dharavi Slum Redevelopment Faces Land Acquisition Hurdles, Raising Concerns

A joint venture led by Gautam Adani is facing significant challenges in securing land to rehabilitate residents of Mumbai's Dharavi slum, one of Asia's largest, raising concerns about the ambitious redevelopment project. According to a government official, the land acquisition difficulties could pose a serious setback to the plan.

Dharavi, sprawling over 240 hectares (594 acres) and famously depicted in the Oscar-winning film Slumdog Millionaire, is set to be transformed into a modern city hub under a $619 million project awarded to Adani Group last year. However, the project has already encountered opposition, with political parties alleging that Adani received undue favors in securing the contract—a claim the group has denied.

A new obstacle has emerged: securing the necessary land to rehouse Dharavi's residents. Only those who lived in Dharavi before 2000 are eligible for free housing under the redevelopment plan, leaving around 700,000 people ineligible. To accommodate these ineligible residents, the project requires at least 580 acres of additional land, which has yet to be secured from local and federal agencies.

SVR Srinivas, head of the Dharavi Redevelopment Authority, highlighted the difficulty of obtaining land in Mumbai, stating, "Physically, not a single inch of land has come to us." He acknowledged that without the necessary land, the project's timeline could be jeopardized.

The Adani Group, which holds a majority stake in the joint venture, has not commented on the situation. The project, aiming to rehouse a million people, began in March with a survey to determine eligibility and is slated for completion in seven years.

The Dharavi redevelopment is a critical and high-profile project for Adani, especially in light of the recent allegations of business mismanagement and stock manipulation leveled against the group by Hindenburg Research, which Adani has denied. Despite the challenges, Adani has expressed hope that the redevelopment will help Dharavi produce "millionaires without the slumdog prefix."

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