French firm Systra refutes MMRDA’s charges of deficiency

Systra India denies construction deficiencies in Mumbai Metro projects, seeks to resume work amid allegations of harassment from MMRDA, and court support.

MUMBAI: French engineering and consulting firm Systra’s Indian arm Systra India has refuted charges of deficiency during the construction of Mumbai Metro projects executed by the Mumbai Metropolitan Region Development Authority (MMRDA) and has expressed its interest in resuming work on these.

Systra India has also moved the Bombay high court to get its termination in the capacity of general consultant from Mumbai Metro lines of 5, 7A and 9 revoked. (HT Photo)

A contractual dispute turned into a diplomatic one when Systra India approached the French embassy seeking assistance to deal with the “severe harassment” it allegedly faced from MMRDA officials, including a demand for undue favours through “monetary benefits”. These allegations led to embarrassment not only for MMRDA but also for the Maharashtra government, which has ordered an inquiry. Systra India has also moved the Bombay high court to get its termination in the capacity of general consultant from Mumbai Metro lines of 5, 7A and 9 revoked.

In an attempt to subside the ongoing tensions between Systra India and MMRDA, the company’s CEO Hari Kumar Somalraju, in a statement issued on Thursday, displayed confidence in continuing to work on the Mumbai Metro projects. “The company remains fully committed to delivering excellence with integrity, as we value our clients with utmost respect,” said the statement. “As a trusted infrastructure partner, Systra remains dedicated to delivering high-quality projects that meet global quality and safety standards for all its clients. Systra will continue to work closely with all stakeholders, including MMRDA, to ensure that projects move forward smoothly. The company is also engaging with the authorities to clear any misunderstandings and reinforce its commitment to ethical business practices.”

In India, Systra has been involved with 80% of the metro projects spread across different cities. Globally, it has been engaged with every second metro network. Systra has been working with MMRDA since 2007 and was also involved in the design and project management of Mumbai Metro 1.

During the week, Systra had maintained silence over the controversy even after moving the Bombay high court. In January 2024, MMRDA had issued a notice of suspension of payments for general consultancy contracts. Thereafter, in October 2024, Systra India approached the French Embassy, updating them about charges of “undue favours” sought and “severe harassment” from MMRDA. If the private company is to be believed, its correspondence was “with the sole aim of restoring the deteriorated situation with MMRDA”.

Later, on January 3, Systra received a notice of discontinuation from MMRDA for the first contract, Line 5, 9 and 7A. Following this notice, Systra decided to file a writ petition in the Bombay high court against what it considered to be an arbitrary decision. On February 25, the court ruled in favour of Systra, saying that MMRDA’s action of discontinuation of the terms of the contract, which was extended up to December 2026, without assigning any reasons was “arbitrary, unfair and unreasonable”. However, MMRDA has been permitted to have a fresh hearing on the contractual dispute and decide on future action.

“...the company does not wish to take any political stance and deplores the political exploitation of the situation. Our sole objective is to restore the relationship with MMRDA, while respecting the ethical principles that are part of our policy. Systra refutes the allegations made by certain sections within MMRDA. The company believes these claims are misleading,” says Systra India’s statement.

Metropolitan Commissioner Sanjay Mukherjee did not with MMRDA’s stance to Systra’s statement.