CRZ Violations In Adani’s Rs 30,000 Cr Bandra Land Deal?

Congress MP and general-secretary (communications) Jairam Ramesh described the project as 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 claimed that despite the financial loss to India’s exchequer and environmental damage, the prime minister’s intent to benefit Adani remains unchecked.

The Adani Group and the Union Ministry of Environment, Forest and Climate Change (MOEFCC) have asserted that the proposed development on a plot of land at Bandra Reclamation is outside the Coastal Regulation Zone (CRZ) and therefore permissible for development.

In response to a Public Interest Litigation (PIL) challenging the commercial development of this land, both the Adani Group and MOEFCC submitted separate affidavits to the Bombay High Court. The PIL, filed by activist Zoru Bathena and the Bandra Reclamation Area Volunteers Organisation (BRAVO), argues that the Maharashtra State Road Development Corporation (MSRDC) should not proceed with the development, as it allegedly violates CRZ regulations. The petition calls for adherence to CRZ norms, a halt to the development, and the restoration of the land as green space.

In his affidavit, Adani representative Akshay Bhalerao dismissed the claims that the land falls within the CRZ, labeling the petition as “factually and admittedly false and misleading.” He referenced a report from the Institute of Remote Sensing at Anna University, Chennai, which concluded that the project site is outside the CRZ after analyzing it against Mumbai’s approved Coastal Zone Management Plan.

Adani further contended that the PIL is premature, as the MSRDC’s tender for the land, issued in January 2024, explicitly stated that all necessary statutory clearances would be obtained prior to development.

The affidavit provided historical context, noting that the Government of Maharashtra sought permission to reclaim land in 1993 for the Bandra-Worli Sea Link. Although the 1991 CRZ notification prohibited such reclamation, a 1997 amendment allowed it for specific projects, including sea links. Environmental clearance was granted in 1999, leading to the sea link’s completion in 2009. The reclaimed land was transferred to MSRDC in 2016, with conditions mandating compliance with development regulations and necessary approvals.

In January 2024, MSRDC issued a tender for the development of a 57-acre parcel, with 29 acres designated for social amenities, roads, and gardens, while 28 acres are available for development. Adani, having submitted the highest bid, was awarded the contract in March 2024. The affidavit emphasized that the land’s current use as a casting yard does not warrant its restoration as green space under CRZ regulations.

A separate affidavit from E. Thirunavukkarasu, a scientist with MOEFCC, referenced 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 the relevant authorities.

However, the project has faced significant criticism from opposition leaders. Congress MP and general-secretary (communications) Jairam Ramesh described it as 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 claimed that despite the financial loss to India’s exchequer and environmental damage, the prime minister’s intent to benefit Adani remains unchecked. Ramesh pointed out that the land was reclaimed from the sea under strict conditions prohibiting commercial or residential development, which he argues the government has ignored.

According to a report by the Free Press Journal, Adani Realty has secured the contract to redevelop the 24-acre Bandra Reclamation land parcel, which was put up by MSRDC. Final approval is pending and will be determined by the MSRDC Board in their upcoming meeting.

Adani Realty emerged as the ‘preferred bidder’ by offering the highest financial bid, providing 22.79 percent revenue to MSRDC, surpassing Larsen & Toubro’s bid of 18 percent. This 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 ultimately secured the preference.

The land parcel has a potential development area of 4.5 million square feet and is valued at around Rs 30,000 crore, according to a Hindustan Times report. The decision was based on a revenue-sharing model, with Adani’s higher bid aligning with the government’s interest in maximizing revenue for new and ongoing infrastructure projects.

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

“Since the MSRDC bids are based on 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, making him our preferred choice. We need resources and funds for our new and ongoing infrastructure projects,” said Gaikwad.

While 18 top players attended the pre-bid meeting, including 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, only three submitted bids in the process.