Systra – a leading French engineering company in charge of designing and overseeing Mumbai’s metro projects, has accused high-ranking officials at the Mumbai Metropolitan Region Development Authority (MMRDA) of corruption, according to a report by PTI.

These officials have allegedly purposefully postponed payments and requested inappropriate benefits, according to the French company. With the Indian government, Systra has formally voiced these concerns and requested diplomatic intervention. It highlighted problems like pressure to boost contractor orders, hold-ups in approving critical staff and unfair fines. Systra reached out to the French embassy for help. In a letter dated November 12, 2024, the embassy urged Rupinder Singh, Maharashtra’s resident commissioner in Delhi, to intervene. The letter pointed out the "significant harassment and difficulties" Systra has faced as the general consultant for MMRDA projects.

Chief Minister Devendra Fadnavis of Maharashtra, who was initially unaware of the complaint, emphasised his administration's dedication to openness while pledging to speak with Chief Secretary Sujata Saunik. MMRDA denied the accusations, calling them unfounded and an attempt to damage its reputation and that of its staff. Systra, in its complaint backed by the embassy, highlighted its strong track record in handling rail and metro projects across India. It pointed out that operational issues have worsened since August 2023, with payments being halted from January 2024. The company requested a detailed investigation and expressed its willingness to work with MMRDA in a fair and pressure-free manner. 

In August 2023, after a leadership change at MMRDA, issues arose between the agency and Systra, a consulting firm overseeing several Mumbai Metro projects. Systra, responsible for Metro lines 5, 6, 7A, 9, 10, and 12, as well as the detailed design of lines 2A, 7, and related depots, claimed that officials started demanding financial favours. These requests were indirectly presented as instructions from senior authorities, including the metropolitan commissioner. Systra refused to comply.

In response, MMRDA stated that an internal investigation revealed multiple breaches by Systra, including cost overruns between 4.27% and 10% and violations of contract terms. Due to security and operational concerns, MMRDA issued a termination notice to Systra, dismissing the matter as a business dispute that the company is wrongly turning into a diplomatic issue.

Systra’s Mumbai General Manager, Arun Mishra, chose not to comment, stating that the issue is currently under review in the Bombay High Court. The company claims that between January and February 2024, the MMRDA stopped payments, despite previously resolving issues related to metro lines 5, 9, 7A, and 6. Additionally, MMRDA changed contract terms for lines 10 and 12 after they had already been settled. Although some payments were resumed in June 2024 following Systra’s protests, Rs 30 crore is still pending for civil works on lines 5, 9, and 7A. Systra also alleges that MMRDA pressured the company to approve inflated contractor orders for line 9 and linked payment delays, along with threats to terminate Systra’s consultancy role, to its refusal to comply. The firm also claims that similar tactics are being used against DB E&C, a German consultancy working with Systra on lines 10 and 12.

Despite lifting suspensions, payments for these projects have been delayed. Additionally, MMRDA has stalled staff approvals, imposed unexpected penalties, and required extra certifications before paying smaller contractors it hired directly.