Mumbai: The Mumbai Metropolitan Region Development Authority (MMRDA) has denied allegations of corruption levelled by French engineering firm Systra, calling them biased and factually incorrect. The controversy erupted after the French Embassy, in a letter dated November 12, 2024, urged Indian authorities to investigate the matter.

Systra, which served as a general consultant for Metro Lines 5, 6, 7A, 9, 10, and 12, and provided detailed designs for Lines 2A, 7, and associated depots, alleged that MMRDA officials began pressuring the company for monetary benefits following a leadership change in August 2023.

The firm claimed that officials threatened to withhold approvals, imposed arbitrary penalties, and coerced them into approving inflated contractor orders. It also accused MMRDA of delaying payments.

Dismissing these claims, MMRDA stated that Systra only raised allegations after receiving suspension and termination notices, suggesting the accusations were an attempt to deflect from its own contractual breaches.

"Despite claiming that issues arose in August 2023, Systra never formally raised concerns with MMRDA or any government authority until after these notices were served," the authority asserted.

A key issue raised by MMRDA was the unsigned and unverified nature of Systra’s representation. Under Maharashtra government policy, unsigned documents are deemed “mere printouts of wild allegations.” The authority further clarified that the French Embassy had merely forwarded the document without endorsing its authenticity.

MMRDA also cited a recent ruling by the Bombay High Court in Writ Petition No. 2889/2025, which denied Systra’s plea for specific performance, affirming MMRDA’s contractual authority. Although the court set aside a notice issued on January 3, 2025, it upheld MMRDA’s right to determine the continuation of services after a fair hearing.

Further criticizing Systra’s performance, MMRDA accused the company of project delays, cost overruns, safety violations, and breaches of contract. Despite assurances from Systra's Global CEO at the Davos Conference in January 2024, the company reportedly failed to improve its performance. Additionally, the Mira Bhayandar Police have booked certain Systra officials for negligence following the death of a worker at a Metro construction site.

MMRDA emphasized that allegations of corruption surfaced only after Systra faced suspension and termination, with no prior complaints recorded in any official forum. It reiterated that the French Embassy maintained a neutral stance, merely forwarding Systra’s unsigned memorandum without commenting on its credibility.