MMRDA denies graft charges, accuses Systra of misrepresenting facts

The Mumbai Metropolitan Region Development Authority (MMRDA) on Tuesday accused French consultancy firm Systra of "misrepresenting facts" to the French government after receiving suspension and termination of contract notices, calling it "an attempt to deflect attention from contractual breaches". 

In a late-evening statement, MMRDA, a state planning and development agency, dismissed media reports about corruption allegations levelled by Systra as "biased and unverified."  Systra had never submitted any formal representation to relevant authorities, including the chief minister of Maharashtra, before the notices were issued, it claimed. "Notably, no such allegations were ever raised before any official forum prior to these notices," MMRDA stated, adding that the allegations of graft were made only after MMRDA issued suspension and termination notices. "This clearly indicates that the allegations are an afterthought aimed at deflecting attention from their own contractual breaches," the authority said in the statement. Systra is working as a general consultant for various metro projects executed by MMRDA in Mumbai's metropolitan region.

The planning body further noted that Systra's representation to the French embassy was unsigned, and should be treated as a "mere printout of wild allegations," adding that the embassy merely forwarded the document without endorsing its authenticity. Referring to the petition filed by Systra's Indian subsidiary in the Bombay High Court against the termination of its contract, the MMRDA said the court denied the company's plea for specific performance, affirming MMRDA's authority under the contract, setting aside the notice dated January 3, 2025, and allowing it to decide on service continuation after a fair hearing. "This reinforces MMRDA's procedural integrity and its rightful discretion in the matter," the state agency contended. MMRDA further claimed that it had consistently raised concerns about Systra's 'substandard' performance, including project delays, cost overruns, safety breaches and contractual violations, and despite assurances from Systra's global CEO during the Davos Conference in January 2024, the performance failed to improve. It also added that the Mira Bhayandar Police has registered cases against some Systra officials for negligence over the tragic death of a worker at a Metro construction site. When a matter is sub-judice, publishing "unverified and biased" information is "inappropriate and prejudicial", it said. Earlier in the day, a bench of Chief Justice Alok Aradhe and Justice Arif Doctor of the Bombay High Court noted that the MMRDA did not give reasons while discontinuing the services of Systra MVA Consulting (India) Pvt Ltd through a notice on January 3, 2025. The court set aside the notice, and asked the state agency to give the company a hearing and take a fresh decision.