Bombay High Court Overturns MMRDA's Termination of Systra's Metro Consultancy Contract

The court deemed the termination arbitrary and directed MMRDA to reconsider its decision after a fair hearing.

The Bombay High Court ruled that the Mumbai Metropolitan Region Development Authority (MMRDA) acted arbitrarily and unfairly in terminating Systra's consultancy contract for Mumbai Metro projects.
The court ordered MMRDA to reevaluate the termination decision after providing Systra with a fair hearing and issuing a reasoned order.
Systra had alleged corruption and harassment by MMRDA officials, claiming delays in payments, arbitrary penalties, and coercion to inflate contractor orders, which MMRDA denied as baseless.
The consultancy contract, initially awarded in 2021 and extended to 2026, covers Mumbai Metro Lines 5, 6, 7A, 9, 10, and 12, with Systra holding a 70% stake in the consortium managing the project.
The controversy has drawn political attention, with Maharashtra's deputy chief minister ordering an investigation and opposition leaders demanding transparency and accountability.