Adani Properties emerges as the highest bidder for ₹36,000 crore Motital Nagar redevelopment project in Mumbai

Adani Properties, part of the Adani Group offered the highest price of ₹36,000 crore for the Motilal Nagar Development Project thereby becoming the “H1 bidder”. The project aims to redevelop 143 acres in Motilal Nagar along with the state's housing body, the Maharashtra Housing and Area Development Authority (MHADA), reported PTI.

Adani Properties has emerged as the highest bidder, surpassing L&T by offering a larger built-up area, according to PTI sources.

This marks Adani Group’s second major redevelopment project in Mumbai, following its ongoing redevelopment of Dharavi, one of Asia’s largest slum areas.

The Maharashtra state government will shortly issue a Letter of Intent to Adani Properties, formally declaring it as the winner, they said.

The Motilal Nagar redevelopment project is estimated to cost ₹36,000 crore, with a rehabilitation period of seven years from its commencement. As per the tender conditions, C&DA must provide a housing stock of 3.83 lakh square meters. APPL won the bid by agreeing to hand over 3.97 lakh square meters to MHADA, while the other qualified bidder, L&T, quoted 2.6 lakh square meters.

MHADA retains full control over the project, including land ownership, and initiated redevelopment due to financial and technical constraints. The private developer cannot mortgage the land, raise finance on it, or sell or transfer rights without MHADA’s permission, ensuring the protection of residents and preventing misuse of redevelopment rights.

The selected C&DA is responsible for the entire redevelopment process, covering design, approvals, construction, infrastructure development, and rehabilitation. The project aims to eliminate illegal construction and create a planned, well-integrated community. It will rehabilitate 3,372 eligible residential units under MHADA, 328 eligible commercial units, and 1,600 eligible slum tenements as per the 1971 Slum Act.

Last week, the Bombay High Court upheld MHADA's decision to proceed with redevelopment through C&DA, reinforcing the need for an integrated development approach.

The division bench, comprising Chief Justice Alok Aradhe and Justice Bharati Dangre, observed that individual cooperative societies would prioritise their own interests and appoint developers for limited-scale redevelopment. This approach, the court noted, would not support orderly planning and infrastructure development and could expose societies to commercial risks.

The court emphasized that only holistic redevelopment can provide a long-term solution to recurring issues like flooding and waterlogging, which fragmented redevelopment would fail to address. At 11:11 am, the shares of Adani Enterprises are trading 0.56% lower at ₹2,238.10 apiece on the NSE.