CRZ violations in Adani’s Rs 30,000 cr Bandra land deal?

The Adani Group and the Union ministry of environment, forest and climate change (MOEFCC) have contended that the proposed development on a plot of land at Bandra Reclamation is outside the coastal regulation zone (CRZ) and hence free for development.

Two separate affidavits were filed — by representatives of Adani Group and MOEFCC respectively — in the Bombay High Court in response to a PIL (public interest litigation) challenging the proposed commercial development of land at Bandra Reclamation.

The PIL, filed by activist Zoru Bathena and the Bandra Reclamation Area Volunteers Organisation (BRAVO), contests the Maharashtra State Road Development Corporation’s (MSRDC) move to develop the land, arguing that such construction is prohibited under CRZ norms. The petition seeks adherence to CRZ regulations, a stay on development, and restoration of the land as a green space.

In its affidavit, Adani’s representative Akshay Bhalerao refuted claims that the land falls within the CRZ, calling the petition “factually and admittedly false and misleading”.

He cited a report from the Institute of Remote Sensing, Anna University, Chennai, which, after superimposing the site on Mumbai’s approved Coastal Zone Management Plan, concluded that the project site is outside the CRZ.

Adani argued that the PIL is premature, as the MSRDC’s tender for the land in January 2024 explicitly stated that all statutory clearances would be obtained before development.

The affidavit detailed the historical context, stating that the Government of Maharashtra had applied for permission to reclaim land in 1993 for the Bandra-Worli Sea Link. While the 1991 CRZ notification prohibited such reclamation, a 1997 amendment allowed it for projects like sea links.

Environmental clearance was granted in 1999, leading to the completion of the sea link in 2009. The reclaimed land was subsequently transferred to MSRDC in 2016, with conditions requiring compliance with development regulations and necessary approvals.

MSRDC issued a tender in January 2024 for the development of a 57-acre parcel, of which 29 acres are reserved for social amenities, roads, and gardens, while 28 acres are available for development. Adani, as the highest bidder, received the contract in March 2024. The affidavit stressed that the land’s current use as a casting yard does not justify restoring it as a green space under CRZ norms.

A separate affidavit filed by E. Thirunavukkarasu, a scientist with MOEFCC, referred to a report from the ministry’s Nagpur office confirming that the land reclaimed for the sea link remained within approved limits. The report also stated that any future development would require permissions from relevant authorities.

However, the project has drawn sharp criticism from opposition leaders. Congress MP and general-secretary (communications) Jairam Ramesh termed it the “latest installment in the Modani Loot Yojana”, alleging that the land has been handed over to Adani in clear violation of CRZ protection laws and environmental clearances.

He asserted that despite the loss to India’s exchequer and environmental damage, the prime minister’s intent to enrich Adani remains unchecked. Ramesh further highlighted that the land was reclaimed from the sea with strict conditions prohibiting commercial or residential development, yet the government has disregarded these stipulations.

Adani Realty has secured the contract to redevelop the 24-acre Bandra Reclamation land parcel, put up by the Maharashtra State Road Transport Corporation (MSRDC), as per a report by the Free Press Journal. The final approval is pending and will be decided by the MSRDC Board in their upcoming meeting.

Adani Realty emerged as the 'preferred bidder' by offering the highest financial bid, providing 22.79 per cent revenue to MSRDC. This surpassed Larsen & Toubro’s bid of 18 per cent, as per the report. The decision comes despite L&T having a stronger net worth of approximately Rs 84,000 crore compared to Adani's Rs 48,000 crore. Adani's higher bid secured the preference, it added.

The land parcel has a potential development area of 45 lakh sq. ft and is valued at around Rs 30,000 crore, as per a Hindustan Times report.

The decision was based on a revenue-sharing model. Adani's higher bid aligns with the government's interest in maximizing revenue for new and ongoing infrastructure projects.

MSRDC officials have denied any favoritism, with MSRDC managing director Radheshyam Mopalwar asserting that the bidding process was transparent and open to all major developers. He refuted allegations that the process was skewed towards any particular bidder and emphasized that both Adani Realty and L&T qualified in technical and financial capability rounds.

“Since the MSRDC bids are of a revenue-sharing model, the developer who offers the maximum percentage of revenue and is beneficial to the government will be the obvious choice. Adani has offered us a higher bid, so he is our preferred choice. We need resources and funds for our new and ongoing infra projects,” said Gaikwad.

While 18 top players attended the pre-bid meeting — Adani Realty, Godrej Properties, JSW, K. Raheja Corp, L&T Realty, Lodha, Mahindra Lifespaces, Oberoi Realty, Phoenix Realty, Runwal, Sahana Group, Sattva, Sunteck Realty, Sumitomo, Wadhwa Group, and Welspun, among others — only three responded to the bidding process.