The Mumbai Metropolitan Region Development Authority (MMRDA) has stated that it will grant a fresh hearing to Systra India and issue a “speaking order” following the Bombay High Court’s directive.

On Tuesday, the High Court set aside MMRDA’s termination of Systra India’s contract, stating that the decision was made without assigning reasons. The court directed MMRDA to reconsider the matter after allowing the company to present its case.

In a statement on Wednesday, MMRDA confirmed its commitment to following the court’s directive. “MMRDA fully respects the court’s decision and will issue a fresh speaking order after affording Systra India a hearing,” the statement read.

According to MMRDA, the decision to terminate the contract was based on concerns over cost estimates submitted by Systra India, which it claimed posed financial and operational risks. MMRDA stated that the court’s ruling reaffirmed its authority to act within the framework of contractual provisions, as the court did not grant Systra India’s request for specific performance.

The issue first gained attention when the French Embassy sent a letter to the Maharashtra government on November 12, 2024, referring to concerns raised by Systra regarding its work with MMRDA.

Systra India had initially been appointed as a general consultant for various metro projects, with its contract extended from November 2024 to December 2026. On January 3, 2025, MMRDA issued a notice stating its decision to discontinue the firm’s services.

As per MMRDA’s statement, Systra India had submitted a representation to the state’s Urban Development Department on January 3, 2025, citing concerns over delayed payments, project approvals, and suspension of payments. MMRDA stated that allegations of misconduct were not included in this representation.

The planning body further stated that it had issued show cause and suspension notices to Systra India in 2023 and 2024 due to deficiencies in tender preparations, which were later revoked in June 2024 after remedial measures. However, fresh discrepancies in cost estimates emerged, prompting MMRDA to take corrective action.

MMRDA reiterated its commitment to fairness, transparency, and ensuring timely project completion.

[PTI]

 Source: By Mumbaimetro - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=132235292