The NCP (SP), led by Sharad Pawar, termed it a serious issue and an 'absolute embarrassment for our country' while the Congress has called for a judicial investigation into the allegations
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The Bombay High Court (HC) on Tuesday set aside a contract termination notice issued by the Mumbai Metropolitan Region Development Authority (MMRDA) to French consultancy firm Systra, reported news agency PTI. The firm had accused several MMRDA officials of corruption related to metro projects in Mumbai.
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The court ruled that the termination decision was "arbitrary and unfair" and directed the state agency to reconsider the matter after hearing the company’s side.
Following the allegations, which sparked a political controversy, sources said Deputy Chief Minister Eknath Shinde, who heads the Urban Development Department (UDD), instructed the Additional Chief Secretary (UD-1) to "inspect the matter" after consulting officials from both the French firm and MMRDA. A report is to be submitted within 15 days, reported PTI.
However, the MMRDA, in a statement, claimed that Systra "misrepresented" certain facts to French government representatives only after receiving suspension and termination notices.
"This clearly indicates that the allegations are an afterthought aimed at deflecting attention from their own contractual breaches," the agency stated.
The MMRDA further pointed out that while Systra claimed the issues began in August 2023, it did not submit any formal complaints to the agency, the UDD, the Chief Secretary's Office, or the Chief Minister's Office until after the termination notice. It also noted that Systra’s complaint was unsigned and, as per Maharashtra government policy, such documents are considered "mere printouts of wild allegations".
Last month, MMRDA terminated contract of firm's Indian subsidiary
"The French Embassy merely forwarded this printout without endorsing its veracity or merit (to the Maharashtra government)," the statement added.
According to PTI, last month, MMRDA terminated the contract of Systra's Indian subsidiary, which had been appointed in 2021 as a general consultant for designing, procurement assistance, construction management, and supervision of three Mumbai Metro routes — Thane-Bhiwandi-Kalyan, Andheri-CSMIA (Chhatrapati Shivaji Maharaj International Airport), and Dahisar-Mira Road.
The issue gained traction after the French Embassy, in a letter dated November 12, 2024, urged the Maharashtra government to "resolve the situation" and conduct a thorough investigation, citing Systra's claims of "severe harassment" while working on MMRDA projects.
Systra alleged that MMRDA officials sought "undue favours," delayed payments, pressured the firm to inflate contractor orders, stalled approvals for key personnel, and imposed arbitrary penalties.
While the contract was originally set to expire in November 2024, it had been extended until December 2026. However, on January 3, 2025, the MMRDA issued a termination notice, prompting Systra to approach the High Court. The agency argued that the contract's general conditions allowed it to terminate services without giving reasons.
On Tuesday, a bench comprising Chief Justice Alok Aradhe and Justice Arif Doctor noted that the MMRDA had not provided any justification for terminating Systra MVA Consulting (India) Pvt Ltd.
Opposition slams Mahayuti government
"We find that the action of the MMRDA in discontinuation of the terms of the contract, which was extended up to December 2026, without assigning any reasons, is arbitrary, unfair and unreasonable," the court said.
It emphasised that state agencies must act fairly and cannot make arbitrary or unreasonable decisions, even in contractual matters.
"The general conditions of the contract cannot be read to mean that the MMRDA has a license to act unfairly, arbitrarily or unreasonably in the contractual field without assigning reasons," the bench observed.
Setting aside the termination notice, the court directed the MMRDA to reconsider the decision after hearing from Systra.
Despite this, the MMRDA, in its statement, claimed that the court's ruling reaffirmed its "procedural integrity and rightful discretion" in the matter. However, the court did not examine Systra’s performance.
Meanwhile, opposition leaders criticised the Mahayuti government and called for an impartial probe.
Urge CM to launch free and fair inquiry into issue: Aaditya Thackeray
Shiv Sena (UBT) leader and former minister Aaditya Thackeray accused Shinde’s Urban Development Department of dismissing corruption concerns raised by the French consultant.
"While India and France get closer diplomatically, the @MMRDAOfficial run by Eknath Shinde's Urban Development department rubbishes concerns of corruption raised by the French consultant," he wrote on X.
"I urge @CMOMaharashtra to launch an open, free and fair inquiry into this issue," he added.
The Maharashtra Congress also called for an impartial investigation, stating that the allegations had tarnished India's global reputation.
Congress spokesperson Sachin Sawant said, "We demand a judicial investigation into this grave issue. No international agency would choose to work in India if justice is not done here."
The NCP (SP), led by Sharad Pawar, called it a serious issue and "an absolute embarrassment for our country."
"#BJP-led Maharashtra government that cries hoarse about transparency must clarify and expose all involved. It will not be surprising if they give a clean chit to the guilty and instead accuse the French company," NCP (SP) spokesperson Clyde Crasto wrote on X.
(With PTI inputs)
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