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The Mumbai Metropolitan Region Development Authority (MMRDA) has reaffirmed its contractual right to terminate SYSTRA India's services following a High Court ruling. The court rejected SYSTRA India's plea for specific performance but directed MMRDA to issue a detailed order after allowing the firm to present its case. MMRDA refuted corruption allegations, stating that SYSTRA's formal representation focused on payment delays and project descoping. The authority cited repeated deficiencies in tender preparation and cost discrepancies as reasons for potential termination. MMRDA plans to ensure a fair hearing and urges the media to verify claims before spreading misinformation.
The Mumbai Metropolitan Region Development Authority (MMRDA) has addressed the ongoing legal dispute with French engineering firm SYSTRA India, following a judgment by the Hon'ble High Court. The court reaffirmed MMRDA's contractual right to terminate SYSTRA India's services but directed the authority to issue a detailed order after allowing SYSTRA India an opportunity to present its case. Advertisement
MMRDA emphasized that the court did not grant SYSTRA India's request for specific performance, thereby reinforcing the authority's position to act according to contractual provisions. The contract in question permits MMRDA to terminate services without assigning any reason, a clause that remains valid as per the court's ruling.
Addressing recent media reports, MMRDA clarified that allegations of corruption and graft were not part of SYSTRA India's official representation submitted on January 3, 2025, to the Additional Chief Secretary, Urban Development Department, Maharashtra. The official representation focused on concerns such as payment delays, delayed approvals, and notices regarding suspension of payments or descoping. MMRDA asserts that the widely circulated allegations of corruption are unfounded and appear to be attempts to divert attention from contractual breaches.
The authority highlighted that it had previously issued show-cause and suspension notices to SYSTRA India in 2023 and 2024 due to repeated deficiencies in tender preparation. Although the suspension was lifted in June 2024 after remedial actions, the process resulted in a six-month project delay. Subsequent discrepancies in cost estimates submitted by SYSTRA India prompted MMRDA to consider termination to safeguard public funds and ensure efficient project execution.
In response to SYSTRA India's allegations of undue favors and payment suspensions, MMRDA described these claims as afterthoughts aimed at evading accountability for delays, cost overruns, and safety violations. The authority noted that these complaints were not formally submitted to MMRDA or relevant government offices until after notices citing deficiencies were issued. Furthermore, MMRDA is contemplating an investigation into possible illegalities by SYSTRA India concerning unauthorized access to Metro project documents and sites.
MMRDA remains committed to adhering to the court's directive by providing SYSTRA India a fair hearing before issuing a final order. The authority urges media organizations to verify claims before publication to prevent the spread of misleading information.
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