MMRCL refused to abide by law, then junked contract: ACES India

“Despite taking all necessary steps within our reach to onboard telecom service providers, having no outstanding license fee demand, and getting oral assurances from MMRC to work towards a workable solution in terms of regulatory framework, we were shocked to receive a letter confirming termination,” an ACES India spokesperson said

Mumbai: The Mumbai Metro Rail Corporation Limited’s (MMRCL) termination of its contract with ACES India, which installed and managed the shared telecommunications infrastructure on the full-underground Aqua Line, was arbitrary and abrupt, the company has alleged.

ACES India was the telecom infra provider for the Aqua Line (Anshuman Poyrekar/HT Photo)

“Despite taking all necessary steps within our reach to onboard telecom service providers, having no outstanding license fee demand, and getting oral assurances from MMRC to work towards a workable solution in terms of regulatory framework, we were shocked to receive a letter confirming termination,” an ACES India spokesperson told Hindustan Times.

Discussions were underway with MMRCL even on the day the contract was terminated, the spokesperson noted. “We intend to challenge the wrongful termination in court and will pursue all remedies available under law.”

As reported by HT on March 20, MMRCL terminated its contract with ACES India earlier this month, claiming telecom companies had been complaining about having to pay very steep fees for using ACES-installed infrastructure.

ACES India rejected the claim, and blamed the MMRCL instead for refusing to update the contract in line with the revised Right of Way (RoW) Rules under the Telecommunications Act, 2023 which came into effect in January 2025. The rules changed the regulatory framework by limiting charges that could be imposed for telecom infrastructure deployment; they also barred metro authorities such as MMRCL from charging RoW fees, the ACES spokesperson said.

“When ACES requested MMRCL to amend the agreement accordingly, MMRCL refused to do so. While ACES provided connectivity infrastructure for over a year without earning a single rupee, MMRCL continued to insist on charges that were clearly not permissible and tenable in law,” a company official explained, requesting anonymity.

The infra company also rejected the claim attributed to telecom companies that it had created a monopoly of sorts. All major telcos had initially participated in the project, including during the proof of concept stage, and problems arose only after introduction of the new RoW Rules, the spokesperson said.

“The network is fully built, operational, and already supporting BSNL and Vodafone Idea. Airtel and Jio have also confirmed readiness to onboard. Despite this, MMRCL has chosen to disrupt a flawlessly functioning system by abruptly abandoning the very framework it designed and awarded,” the spokesperson said.

What actually stalled the onboarding of telecom companies was MMRCL’s refusal to align with the revised RoW Rules, not any action by ACES, the official quoted earlier observed.

“MMRCL ignored the revised RoW Rules, demanded unlawful charges, interfered directly with telecom operators in violation of the tender structure, terminated the contract without basis, and encashed bank guarantees tied to charges the law no longer permits. Ironically, it is now using its own non‑compliance to deflect blame,” the official said.

Along similar lines, the ACES spokesperson said, “The issue is not ACES tariffs. Telecom service providers have consistently maintained that charges linked to RoW must comply with the revised regulatory framework. ACES, as a DoT licensed entity, requested MMRC to align the agreement with the law. MMRC declined to do so.”

As of now, telecom equipment and infrastructure inside the 27 stations and tunnels in the Aqua Line is being dismantled, while the MMRCL has begun scouting for a new agency to provide mobile connectivity for the 33.5-km underground corridor.