Adani Group Outbid L&T & Acquires Prestigious Bandra Project for Redevelopment

Prominent Real estate developer Adani Group has emerged as the ‘preferred bidder’ and thereby, clinched the contract for the redevelopment of the prestigious 24-acre Bandra Reclamation land parcel put up by the Maharashtra State Road Transport Corporation (MSRDC). Joint MD of the Maharashtra State Road Development Corporation, Kailas Jadhav, confirmed the news and told, "Financial bids were opened yesterday, and the revenue share offered by Adani Realty was the highest at 22.7% compared to 18% offered by L&T, with Adani Group emerging as L1." The final decision will be taken by the MSRDC Board next week.

Vice chairman and managing director of MSRDC, Anil Kumar Gaikwad said to the press that Adani Realty has emerged as the highest financial bidder offering 22.79 per cent revenue to the MSRDC beating Larsen and Toubro which has placed an offer of 18 per cent. This despite the latter showing a stronger net worth of Rs. 84,000 crore (approx) as compared to Adani which stood at Rs. 48,000 crore (approx) in the bidding process. 

MSRDC had invited bids for the 24-acre land parcel facing the Mahim Bay and along the Sea Link approach road. This prime land has been allocated for both commercial and residential purposes in the DCPR 2034.

Gaikwad also said, “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 and so he is our preferred choice.”

Very few developers have participated in the pre-bid meeting, but the stringent eligibility criteria of a Rs.15,000 crore net worth left only three in the race. Mayfair Housing was the third bidder.

Kailas Jadhav stated, "Out of three bidders, one was disqualified, and between the two final bidders, the bidder who offered the highest percentage of revenue share to MSRDC was declared L1."

MSRDC aims to generate a minimum revenue of Rs.8,000 crore from this process to fund infrastructure projects. In the Phase 1, the winning bidder will take up 6-7 acres of land where MSRDC is located for development. The bidder has to relocate the MSRDC office and provide them with a fully furnished 50,000 sq ft office within a five-kilometer radius of its present office, according to the terms of the bid.

During November 2022, the Adani Group had also won the Rs.23,000 crore Dharavi Redevelopment Project to redevelop Asia’s largest slum cluster with a bid of Rs.5,069 crore