MTNL has alleged that Larsen and Toubro connected thousands of CCTV cameras without approval, prompting a potential FIR, while Larsen and Toubro maintains the matter concerns only account reconciliation under the Mumbai City Surveillance Project
File Pic/Satej Shinde
A controversy has surfaced over Mumbai’s CCTV surveillance network, with state-run telecom operator MTNL alleging that Larsen & Toubro (L&T) connected thousands of cameras to its network without authorisation.
In a complaint to the Mumbai Police Commissioner, MTNL has sought the registration of an FIR against the company, citing unauthorised use of government telecom infrastructure and potential misuse of public funds under the Mumbai City Surveillance (MCS) Project. mid-day has accessed a copy of the letter.
MTNL flags ‘unauthorised use’
>> In its February 9, 2026 letter, MTNL has raised concerns over alleged irregularities in the execution of the project.
>> The complaint claims that L&T connected nearly 5000 Phase II CCTV cameras to MTNL’s network without formal approval. It further alleges that this led to revenue losses for the state and possible misappropriation of funds allocated by the Maharashtra government.
>> MTNL has termed the move a breach of contractual obligations.
>> It also alleged that since 2021, L&T has continued to use and expand connectivity on its network without the required authorisation or payments, taking advantage of MTNL’s mandate to ensure uninterrupted surveillance connectivity.
What the MCS project?
>> The Mumbai City Surveillance Project is a key public safety initiative aimed at strengthening law enforcement capabilities.
>> The CCTV network is used to monitor sensitive locations, manage large gatherings and religious events, regulate traffic, and assist in crime prevention and investigation.
Key points from MTNL’s complaint
>> Phase I (around 2015) had defined approvals and payment structures
>> No formal extension agreement was executed for Phase II
>> From 2021 onwards, connectivity was allegedly used without a valid contract
>> MTNL has sought an audit of this period, recovery of dues, and accountability
L&T responds
>> Responding to the allegations, an L&T spokesperson said the issue is limited to account reconciliation between consortium partners and not any wrongdoing.
>> MTNL, CMS Computers Ltd., and L&T are part of a consortium formed for the design, development, implementation, and maintenance of the CCTV surveillance system for Mumbai, with L&T as the lead partner under an agreement with the Government of Maharashtra.
>> The current matter relates to reconciliation of accounts between MTNL and L&T with respect to certain pending invoices under Phase I. L&T has submitted all documents, supporting records in line with the contractual framework, including expense adjustments towards maintenance of services.
>> Discussions between the two parties are ongoing and are limited to the reconciliation of accounts.
>> With respect to Phase II, payments are to be received from state govt upon achievement of the ‘go live’ milestone, towards which MTNL and L&T are working together. Any assertion regarding Phase II payments is premature.
>> “This is a matter of account reconciliation and is being addressed through discussions. Any claim that L&T has defrauded the exchequer or failed in its contractual obligations is entirely false and malicious,” the spokesperson said.
No response from MTNL
Repeated attempts by mid-day to seek a response from MTNL did not elicit a reply till press time
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