Mumbai, Feb 26 (PTI) The Mumbai Metropolitan Region Development Authority (MMRDA) on Wednesday said it would issue a fresh “speaking order” after granting French consultant Systra a hearing following a direction from the Bombay High Court.
The HC on Tuesday quashed a contract termination notice by the MMRDA to Systra, which has accused several officials of the authority of corruption related to Metro rail projects in the Mumbai Metropolitan Region, calling it “arbitrary and unfair”.
In a statement on Wednesday, the planning body said it would also give a fresh hearing to SYSTRA India as directed by the high court. “MMRDA fully respects the court’s directive and will issue a fresh speaking order after affording SYSTRA India a hearing,” it said.
With Systra’s graft charges kicking up a political firestorm, sources said earlier that Deputy Chief Minister Eknath Shinde, who heads the Urban Development Department, has asked the Additional Chief Secretary (UD-1) to “inspect the matter” after hearing officials of the French firm as well as the MMRDA and submit a report to him in 15 days.
Justifying its notice, MMRDA said that SYSTRA India continued to submit flawed cost estimates even after earlier notices, leading to financial and operational risks for its projects.
“The decision to proceed with termination was made in the best interest of efficient project execution and safeguarding public funds,” said the MMRDA statement.
It also claimed that the court decision reinforces MMRDA’s authority to proceed as per contractual provisions.
“The court did not grant SYSTRA India’s request for specific performance and instead directed MMRDA to issue a speaking order after giving SYSTRA India an opportunity to present its case,” reads the statement.
The issue gained attention when the French Embassy sent a letter on November 12, 2024, to Rupinder Singh, the Resident Commissioner of Maharashtra in Delhi and asked the state government to investigate the matter thoroughly and to “resolve the situation”, citing Systra’s complaints of “severe harassment” encountered while serving as a general consultant on MMRDA projects.
Systra alleged MMRDA officials sought “undue favours,” delayed payments, pressured the firm to inflate orders to contractors, stalled approvals for critical staffing, and imposed arbitrary penalties.
While the initial contract was to expire in November 2024, it was extended till December 2026.
But on January 3, 2025, the MMRDA issued the company a notice, stating it had decided to discontinue its services prompting the company to move the HC.
According to MMRDA’s statement, SYSTRA India on January 3 submitted a representation to the additional chief secretary of the Urban Development Department, raising concerns about delay in payment, delayed approvals and responses and notice of suspension of payments/descoping.
MMRDA said that none of SYSTRA India’s graft allegations was mentioned in this official representation.
As per the statement, MMRDA had issued show cause and suspension notices to SYSTRA India in 2023 and 2024 due to “repeated deficiencies” in tender preparations but revoked them in June 2024 following remedial measures, which delayed the project by six months.
“Despite reinstatement, fresh discrepancies in cost estimates emerged, prompting MMRDA to take necessary corrective action,” the planning body said, adding that it remains committed to “fairness, transparency, and ensuring the timely completion of projects”. PTI KK NR
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