Deputy CM Eknath Shinde orders probe after French firm accuses MMRDA of corruption in projects

The Bombay High Court HC on Tuesday set aside a contract termination notice issued by the Mumbai Metropolitan Region Development Authority MMRDA to French consultancy firm Systra reported news agency PTI The firm had accused several MMRDA officials of corruption related to metro projects in MumbaiThe court ruled that the termination decision was arbitrary and unfair and directed the state agency to reconsider the matter after hearing the companyrsquos sideFollowing the allegations which sparked a political controversy sources said Deputy Chief Minister Eknath Shinde who heads the Urban Development Department UDD instructed the Additional Chief Secretary UD1 to inspect the matter after consulting officials from both the French firm and MMRDA A report is to be submitted within 15 days reported PTIHowever the MMRDA in a statement claimed that Systra misrepresented certain facts to French government representatives only after receiving suspension and termination noticesThis clearly indicates that the allegations are an afterthought aimed at deflecting attention from their own contractual breaches the agency statedThe MMRDA further pointed out that while Systra claimed the issues began in August 2023 it did not submit any formal complaints to the agency the UDD the Chief Secretarys Office or the Chief Ministers Office until after the termination notice It also noted that Systrarsquos complaint was unsigned and as per Maharashtra government policy such documents are considered mere printouts of wild allegationsLast month MMRDA terminated contract of firms Indian subsidiaryThe French Embassy merely forwarded this printout without endorsing its veracity or merit to the Maharashtra government the statement addedAccording to PTI last month MMRDA terminated the contract of Systras Indian subsidiary which had been appointed in 2021 as a general consultant for designing procurement assistance construction management and supervision of three Mumbai Metro routes mdash ThaneBhiwandiKalyan AndheriCSMIA Chhatrapati Shivaji Maharaj International Airport and DahisarMira RoadThe issue gained traction after the French Embassy in a letter dated November 12 2024 urged the Maharashtra government to resolve the situation and conduct a thorough investigation citing Systras claims of severe harassment while working on MMRDA projectsSystra alleged that MMRDA officials sought undue favours delayed payments pressured the firm to inflate contractor orders stalled approvals for key personnel and imposed arbitrary penaltiesWhile the contract was originally set to expire in November 2024 it had been extended until December 2026 However on January 3 2025 the MMRDA issued a termination notice prompting Systra to approach the High Court The agency argued that the contracts general conditions allowed it to terminate services without giving reasonsOn Tuesday a bench comprising Chief Justice Alok Aradhe and Justice Arif Doctor noted that the MMRDA had not provided any justification for terminating Systra MVA Consulting India Pvt LtdOpposition slams Mahayuti governmentWe find that the action of the MMRDA in discontinuation of the terms of the contract which was extended up to December 2026 without assigning any reasons is arbitrary unfair and unreasonable the court saidIt emphasised that state agencies must act fairly and cannot make arbitrary or unreasonable decisions even in contractual mattersThe general conditions of the contract cannot be read to mean that the MMRDA has a license to act unfairly arbitrarily or unreasonably in the contractual field without assigning reasons the bench observedSetting aside the termination notice the court directed the MMRDA to reconsider the decision after hearing from SystraDespite this the MMRDA in its statement claimed that the courts ruling reaffirmed its procedural integrity and rightful discretion in the matter However the court did not examine Systrarsquos performanceMeanwhile opposition leaders criticised the Mahayuti government and called for an impartial probeUrge CM to launch free and fair inquiry into issue Aaditya ThackerayShiv Sena UBT leader and former minister Aaditya Thackeray accused Shindersquos Urban Development Department of dismissing corruption concerns raised by the French consultantWhile India and France get closer diplomatically the MMRDAOfficial run by Eknath Shindes Urban Development department rubbishes concerns of corruption raised by the French consultant he wrote on XI urge CMOMaharashtra to launch an open free and fair inquiry into this issue he addedThe Maharashtra Congress also called for an impartial investigation stating that the allegations had tarnished Indias global reputationCongress spokesperson Sachin Sawant said We demand a judicial investigation into this grave issue No international agency would choose to work in India if justice is not done hereThe NCP SP led by Sharad Pawar called it a serious issue and an absolute embarrassment for our countryBJPled Maharashtra government that cries hoarse about transparency must clarify and expose all involved It will not be surprising if they give a clean chit to the guilty and instead accuse the French company NCP SP spokesperson Clyde Crasto wrote on XWith PTI inputs