• Source:JND
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French engineering company Systra has levelled allegations of corruption against senior officials of the Mumbai Metropolitan Region Development Authority (MMRDA) in the Mumbai Metro projects. The company alleged that officials sought undue favours and deliberately delayed payments. The matter gained diplomatic attention after the French Embassy, in a letter dated November 12, 2024, urged Indian authorities to investigate the issue.

Systra, which has been involved in designing and overseeing multiple metro lines in Mumbai, sought diplomatic intervention citing "severe harassment and challenges" in executing its role as a general consultant. The French Embassy addressed a letter to Rupinder Singh, the Resident Commissioner of Maharashtra in Delhi, requesting that the matter be examined and resolved, reported TOI.

The company alleged that after a leadership change at MMRDA in August 2023, officials began pressuring them for monetary benefits. According to Systra, officials threatened to withhold approvals, imposed arbitrary penalties, and demanded inflated contractor orders. The firm also claims that between January and February 2024, MMRDA suspended payments citing deficiencies in resolved projects. While some payments were released in June 2024, Systra asserts that Rs 30 crore remains unpaid, the report stated.

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MMRDA Dismisses Claims, Cites Violations

MMRDA has strongly denied Systra’s allegations, calling them baseless. The agency claims that Systra committed multiple contractual and regulatory violations, including cost overruns ranging from 4.27 per cent to 10 per cent in fees. MMRDA also accused the firm of breaching confidentiality, violating Indian labour laws, employing unauthorised third-party personnel at metro sites and failing to uphold safety and quality standards.

In response to Systra’s claims, MMRDA has issued a termination notice to the firm, citing security and operational concerns. The agency insists that the dispute is a commercial matter and alleges that Systra is attempting to escalate it into a diplomatic issue. Despite the termination, some of Systra’s teams remain engaged in the projects. The matter is now sub judice, as Systra has approached the Bombay High Court.

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Additionally, Systra alleges that MMRDA’s pressure tactics extend beyond its own firm to DB E&C, a German consultancy handling Metro Line 4. The agency has reportedly halted payments for several projects, even those where suspension notices were revoked. Additionally, Systra claims that MMRDA has stalled key staff approvals and demanded certifications for payments to minor contractors hired directly by the agency.