The Bombay High Court has quashed the Mumbai Metropolitan Region Development Authority’s (MMRDA) decision to terminate its metro rail contract with French-origin engineering firm Systra MVA Consulting (India) Pvt Ltd, calling the move “arbitrary, unfair, and unreasonable.”

A division bench of Chief Justice Alok Aradhe and Justice Arif S Doctor directed MMRDA to take a fresh decision on the matter and issue a reasoned order after hearing Systra, which holds a 70% stake in the Systra-SMCIPL Consortium.

The controversy began after Systra accused senior MMRDA officials of corruption, alleging that they were pressured to inflate contractor orders, faced delays in key approvals, and were subjected to arbitrary penalties.

The allegations were communicated to the Maharashtra government, as per a Times of India report.

Following the complaints, Systra sought diplomatic intervention. 

In a letter dated November 12, 2024, the French Embassy urged Rupinder Singh, Resident Commissioner of Maharashtra in Delhi, to step in, citing “severe harassment and challenges” faced by the firm while working as a general consultant on MMRDA projects.

Systra had been awarded the contract in June 2020 for Rs. 90.76 crore to oversee the design, procurement, construction, and supervision of three metro corridors—Thane-Bhiwandi-Kalyan, Andheri (East)-CSIA, and Mira Bhayander.

The firm was appointed as a general consultant in May 2021 for system works, initially until November 2024, with an extension until December 2026.

However, in January 2025, MMRDA abruptly issued a notice terminating Systra’s contract without stating specific reasons, as reported by The Indian Express.

The move led Systra to challenge the decision in court, resulting in the Bombay High Court’s recent intervention.

With the court directing MMRDA to reconsider its decision, the future of the metro project’s consultancy now hangs in the balance as authorities reassess their stance on the termination.