MMRDA-Systra dispute: Transparency won't be compromised, says Maha CM

Mumbai, March 2: Maharashtra Chief Minister Devendra Fadnavis on Sunday said that the Additional Chief Secretary of Urban Development Department Aseem Gupta has been asked to hold hearing on the dispute between the Mumbai Metropolitan Region Development Authority (MMRDA) and the French company Systra by giving both the sides opportunities to plead their sides.

He told reporters after the cabinet meeting and the customary tea meeting on the eve of the budget session that the transparency will not be compromised in this case.

“The government will continue to give good treatment to foreign companies. The government and its undertakings are prepared to remove lapses and shortcomings from their side, but the foreign companies will also have to take similar steps from their side,” said the Chief Minister.

On the other hand, the Deputy Chief Minister and the Urban Development Minister Eknath Shinde, who is also the chairman of the MMRDA, said that SYSTRA in its letter dated February 27 has denied any financial transaction as reported by the media.

“Media should also publish this letter,” he added. Shinde said that the French company should have approached the state government or him instead of making its representation to the French Embassy in New Delhi.

The dispute arose from a contract awarded to Systra-SMCIPL Consortium, in which Systra holds a 70 per cent stake, for general and design consultancy services for Mumbai metro lines 5 (Thane-Bhiwandi-Kalyan), 7A [Andheri (East)-CSIA], and 9 (Mira Bhayander).

Systra, in an unsigned letter, had raised serious challenges of harassment and undue demands of monetary favours by MMRDA. The company had claimed that MMRDA officials have been pressuring it to make improper financial contributions.

MMRDA in its response to Systra’s allegations, said the French company aimed to distract from its own contract breaches and accused it of poor performance.

Further, MMRDA also clarified that Systra misrepresented facts to the French government only after receiving suspension and termination notices indicating that the allegations were an afterthought aimed at deflecting attention from Systra’s own breaches of contract.