The Mumbai Metropolitan Region Development Authority’s (MMRDA) notice of termination for French consulting firm Systra was reversed by the Bombay High Court (HC), which referred to the ruling as “arbitrary and unfair.” The decision follows Systra’s accusations of corruption against a number of MMRDA executives in connection with Mumbai metro construction.
The court directed MMRDA to reconsider its decision after allowing the firm to present its case. Following the controversy, Deputy Chief Minister Eknath Shinde, who oversees the Urban Development Department (UDD), ordered an inquiry into the allegations and sought a report within 15 days.
MMRDA retorted that Systra only made these accusations after being served with notices of suspension and termination. The agency contended that prior to the termination notice, Systra had not filed any official complaints with the appropriate Indian government bodies and had misrepresented facts to French authorities. MMRDA added that Systra’s complaint was not signed, which diminishes its credibility in accordance with Maharashtra government regulation.
Systra’s Indian subsidiary, appointed in 2021 as a general consultant for three Mumbai Metro corridors, faced contract termination on January 3, 2025. The contract, initially set to expire in November 2024, had been extended until December 2026. Systra approached the HC, challenging the termination, while MMRDA defended its right to terminate contracts without explanation.
A division bench consisting of Justice Arif Doctor and Chief Justice Alok Aradhe declared that the MMRDA’s decision was unfair and lacked rationale. The court underlined that government organisations cannot unilaterally enforce contractual requirements and must behave transparently.
Despite the ruling, MMRDA maintained that its actions were procedurally sound and noted that the court did not evaluate Systra’s performance. Meanwhile, the issue has sparked political controversy. Opposition leaders, including Aaditya Thackeray and Maharashtra Congress representatives, criticised the Mahayuti government and called for an impartial probe, citing concerns over India’s global reputation. The NCP (SP) also condemned the controversy, warning that it could deter international companies from working in India.
Following Systra’s allegations of harassment, undue favours, late payments, and pressure to influence contractor orders, the French Embassy has already urged the Maharashtra government to carry out a comprehensive inquiry. As the case develops, everyone is watching to see what the state administration does in response to the accusations and court orders.
Source: Mid-Day
