Adani Group emerges as highest bidder for Rs 36,000 cr Motilal Nagar redevelopment in Mumbai
Mumbai: Following its major role in the Dharavi slum redevelopment, Gautam Adani's group has emerged as the highest bidder for the Rs 36,000 crore redevelopment project of Motilal Nagar in Mumbai, PTI reported citing sources.
Motilal Nagar, spread across 143 acres in Goregaon (W), is among the city's largest housing redevelopment projects.
According to sources familiar with the matter, Adani Properties Pvt Ltd (APPL) outbid its closest competitor, Larsen & Toubro (L&T), by offering a higher built-up area.
The Maharashtra Housing and Area Development Authority (MHADA) is expected to issue a Letter of Allotment (LoA) to Adani in due course, marking this as Adani Group's second major redevelopment project in Mumbai after Dharavi.
The Adani Group declined to comment on the development.
High Court approval and project classification
The Bombay High Court last week allowed MHADA to proceed with the redevelopment of Motilal Nagar through a construction and development agency (C&DA).
The Maharashtra government had declared it a 'special project,' enabling MHADA to retain ownership and control while working through a C&DA due to the project's scale and economic viability.
In its ruling, the court noted that holistic redevelopment by a single agency was crucial to address long-standing issues like flooding and waterlogging in the area.
The bench, comprising Chief Justice Alok Aradhe and Justice Bharati Dangre, observed that allowing cooperative societies to independently develop their portions could lead to fragmented development and compromise infrastructure planning.
Project scope and Adani's winning bid
The redevelopment of Motilal Nagar is expected to cost approximately Rs 36,000 crore, with a rehabilitation period of seven years from the project's commencement.
According to the tender conditions, the selected C&DA must provide 3.83 million square meters of housing stock. Adani Properties outperformed L&T by agreeing to hand over 3.97 million square meters to MHADA, compared to L&T’s offer of 2.6 million square meters, sources said.
MHADA will retain full control of the land and project but opted for a private developer due to its limited financial and technical capacity to handle a project of this magnitude.
The developer will be prohibited from mortgaging or selling the land or transferring development rights without MHADA's approval, ensuring protection for residents and slum dwellers.
The selected developer will oversee the design, approvals, construction, infrastructure development, and rehabilitation process.
Rehabilitation and infrastructure development
As part of the redevelopment, the project will rehabilitate 3,372 eligible residential units under MHADA, 328 commercial units, and 1,600 slum tenements under the 1971 Slum Act.
The plan also aims to eliminate illegal structures and transform Motilal Nagar into a modern, well-planned residential hub.
The court emphasized that a unified redevelopment approach would ensure better infrastructure, flood control, and orderly planning, unlike fragmented redevelopment by individual cooperative societies.
The project's scale and strategic importance make it one of Mumbai's largest urban redevelopment undertakings.
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