Bombay HC Quashes MMRDA's Contract Termination Notice To Firm For Mumbai Metro Consultancy

Mumbai: The Bombay High Court on Tuesday quashed the notice issued by the Mumbai Metropolitan Region Development Authority (MMRDA) on January 3, discontinuing the contract awarded to Systra MVA Consulting (India) Pvt. Ltd. for providing consultancy services for system works on part of the Mumbai Metro Lines corridor.

A bench comprising Chief Justice Alok Aradhe and Justice Arif Doctor also directed the MMRDA to reconsider awarding the consultancy contract to the petitioner (Systra) or otherwise.

About The Case

The company was appointed as a general consultant for Mumbai's Metro Lines 5, 6, 7A, 9, 10, and 12, and detailed design provider for Lines 2A, 7, and associated depots. 

The HC was hearing a petition filed by the French company Systra MVA Consulting (India) Pvt. Ltd., challenging the validity of the MMRDA’s January 3 notice, which discontinued the contract awarded to it for consultancy services.

On February 11, 2020, the MMRDA published a tender notice inviting bids for the appointment of a General Consultant for system works on part of the Mumbai Metro Lines corridor. The Systra-SMCIPL Consortium, of which the petitioner was a part, submitted its bid on June 16, 2020, which was accepted by the MMRDA.

On May 31, 2021, the MMRDA issued a Letter of Acceptance (LOA) to the consortium, appointing it as the General Consultant.

Subsequently, the parties entered into an agreement on December 28, 2021, with Systra’s initial appointment period set for 42 months, from May 31, 2021, to November 30, 2024.

Before the contract’s expiry, on October 4, 2024, Systra’s tenure as General Consultant was extended until December 31, 2026.

After the MMRDA issued a notice discontinuing Systra’s services, the company approached the HC.

The detailed order will be available subsequently.