India's Adani forms key JV to redevelop one of Asia's biggest slums Dharavi

MUMBAI, Sept 21 (Reuters) - Indian billionaire Gautam Adanis property unit has formed a joint venture with Mumbais slum rehabilitation authority to redevelop the Dharavi, a key step towards rebuilding one of Asias biggest slums that is mired in legal controversy.

A spokesperson from Adani Group confirmed the formation of the entity, Dharavi Redevelopment Project Pvt Ltd, without elaborating further. Redevelopment of Dharavi, where 1 million people live, has been delayed for decades.

The setting up of the JV is a critical step and assumes significance as it comes as Adani faces an ongoing legal challenge from a rival bidder, Dubai-based SecLink Technologies Corporation.

SecLink alleges Mumbais Maharashtra state improperly cancelled an original 2018 bidding process and restarted it so that Adani could win. The state and Adani deny any wrongdoing, and say SecLinks case should be thrown out.

SVR Srinivas, who heads the state-run Dharavi Redevelopment Authority, told Reuters in an interview in August that the state will appoint the chairman of the new 80:20 Adani Properties-state government JV, while the CEO will be from Adanis camp.

The next step would be the submission of a master plan by the Adani group which will have key details including planning on infrastructure, rehabilitation and public amenities, he said.

The Dharavi slum, about three-quarters the size of New Yorks Central Park, featured in Danny Boyles Oscar-winning 2008 movie \“Slumdog Millionaire\”.

Adani group won the Dharavi rebuilding project in July by bidding $610 million for the project.

Apart from the legal challenge by SecLink, Reuters reported in August that Dharavi residents are concerned about billionaire Adanis capacity to deliver amid high-profile financial setbacks post allegations by U.S. short seller Hindenburg of improper dealings in January, which he denies.