No complaint by Systra before termination of deal with French firm due to contractual breaches: MMRDA

Mumbai: Amid the bunch of allegations including bribery charges involving Mumbai metro projects levelled by the Indian arm of France-based multinational, Systra MVA Consulting (India) Pvt Ltd, the Mumbai Metropolitan Region Development Authority (MMRDA) clarified that the company has not raised any complaint.

“Systra has claimed that the issues began in August 2023, yet it never submitted any formal representation to MMRDA, the Urban Development Department, the Chief Secretary’s Office, or the Chief Minister’s Office until after the suspension and termination notices were served,” the MMRDA said on Tuesday night.

The MMRDA, which is the nodal agency for execution of metro rail projects in the MMR comprising the twin districts of Mumbai City and Mumbai Suburban and neighbouring districts of Palghar, Thane and Raigad, said that Systra is misrepresenting facts.

“Systra misrepresented certain facts to the representatives of the French government only after receiving the suspension and termination notices from MMRDA. This clearly indicates that the allegations are an afterthought aimed at deflecting attention from their own contractual breaches,” it said.

“The so-called representation by Systra is unsigned, and as per the Government of Maharashtra’s policy, such an unsigned document can only be treated as a “mere printout of wild allegations.” The French Embassy merely forwarded this printout without endorsing its veracity or merit,” the MMRDA pointed out.

It said that the MMRDA had consistently raised concerns about Systra’s substandard performance, including project delays, cost overruns, safety breaches, and contractual violations. “Despite assurances from Systra’s Global CEO during the Davos Conference in January 2024, their performance failed to improve,” the MMRDA said.

On alleged safety violations, it said that the Mira Bhayandar Police had booked certain Systra officials for negligence, which resulted in the tragic death of a worker at the Metro construction site.

"The allegations of graft were made only after MMRDA issued suspension and termination notices. Notably, no such allegations were ever raised before any official forum prior to these notices. The French Embassy’s letter did not endorse any allegations; it simply forwarded an unsigned memorandum without commenting on its authenticity,” the MMRDA said.