French firm alleges MMRDA officials of Corruption; delaying payment for “undue favours” Systra seeks diplomatic intervention

French Firm Systra accused them MMRDA officials of seeking “undue favours” and delaying payment. The French company has alleged that these officials have demanded improper benefits and intentionally delayed payments. Systra has formally raised these concerns with the Indian government and sought diplomatic intervention. French firm Systra, a prominent French engineering firm responsible for designing and supervising Mumbai’s metro projects.

Mumbai: According to a report, a French firm Systra, a prominent French engineering firm responsible for designing and supervising Mumbai’s metro projects, has accused senior officials at the Mumbai Metropolitan Region Development Authority (MMRDA) of corruption.

Firm Systra accused them of seeking “undue favours” and delaying payment. The French company has alleged that these officials have demanded improper benefits and intentionally delayed payments. Systra has formally raised these concerns with the Indian government and sought diplomatic intervention. It pointed to issues like pressure to increase contractor orders, delays in approving essential personnel, and the imposition of unjust fines.

Systra sought diplomatic intervention. In a letter dated Nov 12, 2024, the French embassy asked Rupinder Singh, resident commissioner of Maharashtra in Delhi, to intervene for the firm, which cited “severe harassment and challenges” while working as general consultant on MMRDA projects.

MMRDA dismissed the accusations as unfounded, labeling them an intentional effort to tarnish its image and that of its staff. Systra, in its embassy-supported complaint, emphasised its long-standing success in managing rail and metro projects across India.

According to Systra, the issues emerged after a change in MMRDA leadership in August 2023. As the general consultant for Metro lines 5, 6, 7A, 9, 10, and 12, and the detailed design provider for lines 2A, 7, and related depots, Systra claims officials began soliciting financial favors, subtly framed as directives from superiors, including the metropolitan commissioner. The firm refused to comply, it said.

MMRDA said it has issued a termination notice to Systra for various violations, including security concerns and operational lapses. “It is important to note that the present matter pertains to a commercial dispute,” it said. “Unfortunately, Systra appears to be attempting to escalate this into an issue between a foreign country and an agency of the govt of Maharashtra, which is not an appropriate practice.”
Systra’s general manager for Mumbai, Arun Mishra, said, “We capt comment as the matter is sub judice.” Systra has approached Bombay high court over the issue.

Systra has approached Bombay High Court over the issue. But the Bombay High Court on Tuesday quashed the notice issued by the Mumbai Metropolitan Region Development Authority (MMRDA) on January 3, discontinuing the contract awarded to Systra MVA Consulting (India) Pvt. Ltd. for providing consultancy services for system works on part of the Mumbai Metro Lines corridor.

CM Devendra Fadnavis said the complaint had not reached him but he would speak to chief secretary Sujata Saunik. “Transparency is at the core of our administration. We will ensure it is restored at any cost”.