French consulting firm Systra has voluntarily withdrawn its petition against the Mumbai Metropolitan Region Development Authority (MMRDA) and the Maharashtra government on Monday. The petition had challenged MMRDA's rejection of the company's request for a time extension on its projects.

Systra has been providing consultancy services for multiple Mumbai Metro lines, serving as general consultant for Lines 5, 6, 7A, 9, 10, and 12, while also delivering detailed design work for Lines 2A, 7, and their associated depot facilities. The company had taken legal action after MMRDA unilaterally terminated its contract—a decision that was recently overturned by the High Court in Systra's favor.

During Monday's proceedings, Systra's legal representative, advocate Venkatesh Dhond, informed the court that the company had decided to withdraw its petition. Maharashtra Advocate General Birendra Saraf, representing the state, promptly clarified, "I just want to say that we have not told them to withdraw," to which Dhond responded, "We are not saying that. One has to understand the nuances." The bench, comprised of Chief Justice Alok Aradhe and Justice Bharti Dangre, subsequently permitted the withdrawal.

Sources indicate that following the High Court ruling, the French embassy has initiated discussions with both the Maharashtra government and MMRDA officials. Systra's decision to withdraw appears strategic, avoiding confrontation with MMRDA while diplomatic negotiations to resolve the dispute continue.

The conflict has been further complicated by Systra's allegations that certain MMRDA officials sought personal financial benefits from the company. These claims prompted Maharashtra Deputy Chief Minister Eknath Shinde to order an investigation into the dispute last month. Meanwhile, MMRDA has countered with accusations that Systra violated contractual and regulatory requirements, with cost overruns allegedly increasing from 4.27% to 10% in fees.