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2mo ago

Bombay High Court Overturns MMRDA's Termination of Systra's Metro Consultancy Contract

The court deemed the termination arbitrary and directed MMRDA to reconsider its decision after a fair hearing.

Mumbai, India - September 05, 2022: An aerial view of Metro train running slow during its dynamic testing on Metro Line-7 (Red Line) Phase-2 between Aarey Station and Andheri (East) Station on Western Express Highway, Jogeshwari, in Mumbai, India, on Monday, September 05, 2022. (Photo by Vijay Bate/HT Photo) (HT PHOTO)
Navi Mumbai, India - Nov. 28, 2023:CIDCO to start services Metro corridor in Navi Mumbai from Belapur to Pendhar at Kharghar in Navi Mumbai, India, on Saturday, November 28, 2021. (Photo by Bachchan Kumar/ HT PHOTO) (HT PHOTO)

Overview

  • The Bombay High Court ruled that the Mumbai Metropolitan Region Development Authority (MMRDA) acted arbitrarily and unfairly in terminating Systra's consultancy contract for Mumbai Metro projects.
  • The court ordered MMRDA to reevaluate the termination decision after providing Systra with a fair hearing and issuing a reasoned order.
  • Systra had alleged corruption and harassment by MMRDA officials, claiming delays in payments, arbitrary penalties, and coercion to inflate contractor orders, which MMRDA denied as baseless.
  • The consultancy contract, initially awarded in 2021 and extended to 2026, covers Mumbai Metro Lines 5, 6, 7A, 9, 10, and 12, with Systra holding a 70% stake in the consortium managing the project.
  • The controversy has drawn political attention, with Maharashtra's deputy chief minister ordering an investigation and opposition leaders demanding transparency and accountability.