Dharavi Redevelopment: Empty Promises or Genuine Transformation?
In Mumbai's heart sits Dharavi—one of Asia's largest informal settlements and arguably the most valuable slum in the world. Sprawling across 590 acres of prime real estate between the city's two main suburban rail lines, this dense urban fabric houses approximately one million people in a thriving economic ecosystem generating an estimated $1 billion annually through thousands of small-scale industries.
After two decades of broken promises and false starts, the Maharashtra government awarded the ₹20,000 crore ($2.4 billion) Dharavi Redevelopment Project to the Adani Group in November 2022. This decision—shrouded in questions about bidding procedures and evaluation criteria—has reignited long-standing debates about whether such projects genuinely aim to improve lives or simply represent sophisticated land grabs cloaked in development rhetoric.
The Questions We Must Ask
Is this project truly about improving living conditions for Dharavi's residents, or primarily about unlocking some of the most valuable real estate in India? Will the proposed 350 square feet apartments—smaller than many executives' office suites—truly provide dignity, or merely warehouse the poor more conveniently? And perhaps most importantly: after 20 years of cyclical promises and disappointments, what accountability mechanisms exist to ensure this attempt doesn't follow the familiar pattern of grand announcements followed by quiet abandonment?
These are not academic questions but urgent moral concerns. The Adani Group's approach will directly impact hundreds of thousands of lives and could set precedents—positive or devastating—for similar developments worldwide. For real estate developers and policy makers alike, Dharavi presents not just a business opportunity but a fundamental ethical test of our industry's claim to serve human flourishing alongside profit.
Two Decades of Political Theater and Failed Promises
Understanding Dharavi's redevelopment requires confronting an uncomfortable truth: for nearly 20 years, various Maharashtra governments have used this project for political pageantry while delivering virtually nothing. Let's call this what it is:
In 2004, the Maharashtra government announced grand plans to transform Dharavi—convenient timing before elections
In 2007, a global tender was floated with enormous fanfare, only to be abandoned with the convenient excuse of the financial crisis
In 2011, officials repackaged the same unfulfilled promises with a new approach, dividing the area into five sectors—yet produced zero actual housing
In 2018, the Dubai-based SecLink Technologies Corporation won a bid that was mysteriously canceled after a change in government
In 2022, the Adani Group secured the project with a ₹5,069 crore bid in a process that raised serious questions about transparency and evaluation criteria
We must ask: How many election cycles will Dharavi's residents endure promises that evaporate after votes are counted? Is this pattern of announcement-abandonment-reannouncement a deliberate strategy to maintain the status quo while appearing progressive? And perhaps most provocatively—would any government dare such negligence if the affected population weren't predominantly low-income and politically marginalized?
This two-decade saga of false starts reflects more than just "challenges in alignment"—it reveals a profound governance failure and arguably constitutes a form of structural violence against Dharavi's residents, who continue living in hazardous conditions while politicians and developers play extended games with their futures.
The Current Plan: A Devil's Bargain?
The Adani Group—a conglomerate better known for ports and power plants than compassionate urban renewal—has outlined a plan that demands critical scrutiny:
Free housing of 350 square feet for "eligible" residents who settled in Dharavi before January 2000—an arbitrary cutoff that potentially excludes hundreds of thousands
Redevelopment of approximately 100 acres of residential areas—less than 20% of the total land
Development of approximately 200 acres for commercial and mixed-use construction—where the real profit centers will emerge
Creation of wide roads, public spaces, and modern infrastructure—likely designed to serve new commercial interests rather than existing residents
Relocation of certain industries and commercial activities—potentially destroying the economic ecosystem that employs thousands
Let's ask the uncomfortable questions: Why is one of India's most politically connected conglomerates suddenly interested in slum rehabilitation? Is the 2000 cutoff date a deliberate strategy to minimize housing obligations while maximizing developable land? And most crucially—with no significant penalties for non-performance, what prevents Adani from following the well-worn path of previous developers who made grand promises only to later abandon them when political winds shifted?
These aren't academic concerns. The project's contentious details reveal a fundamental tension between maximum profit extraction and meaningful humanitarian impact. Will the government hold Adani accountable with specific, enforceable performance metrics for housing delivery, or will this become another case of privatizing profits while socializing responsibility for the most vulnerable?
The Humanitarian Considerations
Any discussion of Dharavi's redevelopment must address several humanitarian dimensions:
1. Housing Rights and Displacement
The fundamental question is who has the right to remain in a redeveloped Dharavi. Current eligibility criteria—requiring proof of residence before 2000—could exclude hundreds of thousands of residents. For those eligible, concerns remain about whether promised replacements will materialize and whether temporary housing during construction will be adequate.
Activists and housing rights organizations argue that a truly ethical redevelopment must accommodate all current residents, not just those meeting arbitrary cutoff dates. The UN Special Rapporteur on adequate housing has previously expressed concern about forced evictions and inadequate resettlement in Mumbai's redevelopment projects.
2. Economic Ecosystem Preservation
Dharavi isn't merely housing—it's a complex economic machine where proximity, networks, and informal arrangements create livelihoods. The settlement houses thousands of small businesses, from pottery and leather workshops to recycling operations and garment manufacturing.
The current plan's approach to commercial spaces remains unclear. Will artisans and small industrialists receive workspaces near their residences? Will the new configuration allow for the organic commercial networks that currently thrive? These questions remain largely unanswered.
3. Community Cohesion and Cultural Identity
Beyond physical structures lie questions of community. Dharavi contains distinct neighborhoods with their own cultural identities, religious institutions, and social structures. Residents have expressed concern that redevelopment could scatter communities and destroy social bonds built over generations.
Any ethical redevelopment must consider how to preserve these social ecosystems rather than creating sterile housing that ignores the human connections that make neighborhoods function.
The Developer's Equation
From the Adani Group's perspective, the project presents both extraordinary opportunities and challenges:
The Commercial Opportunity
With 590 acres of land in central Mumbai—one of the world's most expensive real estate markets—the potential upside is enormous. Current estimates suggest the land alone could be worth over $10 billion if fully developed with commercial and premium residential properties.
The project also offers reputational benefits for a conglomerate seeking to diversify its portfolio and establish credentials in urban development. Success in Dharavi could position Adani as a leader in solving complex urban challenges.
The Implementation Challenges
The commercial opportunity comes with immense execution complexities:
Managing the relocation and rehousing of hundreds of thousands of residents
Navigating political sensitivities and changing policy landscapes
Addressing infrastructure deficiencies while maintaining project economics
Balancing profit motives with commitments to existing residents
Managing global scrutiny and reputational risks
These challenges explain why previous attempts have failed. The question remains whether the current approach has found the formula to balance these competing priorities.
Key Lessons for Responsible Development
For developers, investors, and policymakers, Dharavi offers several crucial lessons:
1. Community Engagement Is Non-Negotiable
The most successful urban renewal projects globally have embraced meaningful community participation rather than top-down planning. This means:
Transparent information sharing about plans and timelines
Formal mechanisms for resident input into design decisions
Collaborative approaches to determining eligibility and benefits
Independent monitoring of commitments to residents
The Dharavi Redevelopment Project has faced criticism for insufficient engagement with residents. Moving forward, establishing more robust mechanisms for dialogue could prevent resistance and improve outcomes.
2. Phased Implementation Reduces Disruption
Large-scale redevelopment creates massive disruption to daily life. Thoughtful phasing can minimize these impacts by:
Developing in small sections to limit simultaneous displacement
Building replacement housing before demolishing existing structures
Ensuring continuity of essential services throughout the process
Allowing businesses to relocate without ceasing operations
The current plan's phasing details remain unclear, but international best practices suggest incremental approaches work better than wholesale transformation.
3. Mixed-Income Development Creates Sustainable Communities
Rather than creating separate zones for different income groups, successful urban renewal typically embraces mixed-income approaches that:
Avoid stigmatization of affordable housing sections
Create economic diversity that supports various business types
Ensure equitable access to amenities and infrastructure
Generate a sense of inclusive community
Whether the Dharavi redevelopment will embrace this principle or create stratified neighborhoods remains to be seen.
4. Economic Preservation Requires Intentional Design
Preserving Dharavi's economic vitality requires specific design interventions:
Creating appropriately sized and affordable commercial spaces
Ensuring proximity between related businesses to maintain supply chains
Providing flexible spaces that can adapt to changing needs
Maintaining the density that makes certain businesses viable
These considerations must be built into initial designs rather than addressed as afterthoughts.
5. Transparency Builds Trust and Mitigates Risk
For developers, establishing transparent processes around eligibility, timelines, and benefits reduces the risk of opposition and legal challenges. This includes:
Clear, publicly available criteria for housing eligibility
Published timelines for construction and relocation
Independent verification of commitments
Regular public reporting on progress and challenges
The Dharavi project has suffered from perception issues partially due to information gaps that breed uncertainty and mistrust.
A New Model of Urban Renewal?
The Dharavi Redevelopment Project has the potential to either reinforce or reinvent approaches to informal settlement upgrading. If successful, it could demonstrate how public-private partnerships can address urban housing challenges at scale while respecting residents' rights and preserving complex social ecosystems.
However, success requires moving beyond seeing Dharavi solely as an attractive land parcel and recognizing it as a living community with legitimate claims to place and livelihood. This means:
Recognizing residents as partners rather than obstacles
Valuing the existing social and economic networks
Measuring success beyond financial returns to include social outcomes
Creating governance mechanisms that ensure long-term community benefits
Building flexibility into designs to accommodate organic growth and change
The Global Implications—and Our Responsibility to Demand Better
As urbanization accelerates globally, the Dharavi approach will inevitably influence how other cities address informal settlements. The stakes couldn't be higher—this project could either inaugurate a new era of ethical urban development or cement worst practices that prioritize land value over human lives.
Let us be crystal clear: the current approach falls woefully short of international best practices. UN-Habitat, World Bank urban development guidelines, and countless academic studies have established that successful slum redevelopment requires genuine participation, transparent governance, and mechanisms ensuring economic continuity. The Dharavi process has, thus far, demonstrated little evidence of these essential elements.
Will the international development community remain silent as one of the world's most visible urban renewal projects proceeds with insufficient accountability mechanisms? Will architectural and planning firms lend their expertise to a process that risks massive displacement without adequate safeguards? And perhaps most importantly—will global investors scrutinize the social impact of their capital, or turn a blind eye to humanitarian concerns in pursuit of returns?
For developers and investors engaged in international markets, Dharavi represents a moral crossroads. The days of simply clearing land and building anew without consideration of existing communities must end—replaced by approaches that recognize that true sustainability includes social outcomes alongside environmental and economic ones.
Our Industry's Moment of Truth
As the Dharavi Redevelopment Project moves from planning to implementation, we believe the real estate industry faces a moment of reckoning. Will we continue the comfortable pattern of paying lip service to social responsibility while designing projects that fundamentally serve wealth extraction? Or will we demand—and deliver—a new paradigm?
At Shelter & Leisure, we take a clear stance: the current approach to Dharavi appears dangerously weighted toward commercial interests at the expense of human ones. The 2000 cutoff date, the opacity around commercial development plans, and the insufficient mechanisms for community input all suggest a project designed primarily for profit rather than genuine transformation.
This need not be the case. We've seen projects globally—from Singapore's early public housing initiatives to more recent community-led redevelopments in Latin America—that successfully balance commercial viability with human dignity. What's lacking isn't models but political will and corporate courage.
For developers, the question is simple but profound: Are you building tomorrow's slums through today's "solutions," or are you creating lasting value through genuine inclusion? Are you willing to sacrifice some margin for measurable social impact? Will you demand more of governments than convenient regulatory shortcuts?
Dharavi deserves better than empty promises and extractive economics clothed in development rhetoric. Its residents deserve genuine partnership, transparent processes, and enforceable commitments. And the world deserves a model of urban renewal that challenges our industry to be better—not just more profitable.
The project's ultimate success will be measured not in gleaming towers and investor returns, but in how it answers fundamental questions: Who has the right to the city? How is economic opportunity preserved during physical transformation? Can development serve both commercial and humanitarian imperatives without sacrificing either?
We believe it can—but only through radically higher standards of accountability, inclusion, and governance than we've seen thus far.
At Shelter & Leisure, we challenge real estate developers to pursue projects that are both commercially viable and socially transformative. Our strategic insights and outspoken advocacy support developments that balance profit with purpose, knowing that truly valuable projects create benefit for all stakeholders, especially those most vulnerable to change.