India, Feb. 26 -- The Bombay high court on Tuesday struck down the Mumbai Metropolitan Region Development Authority's (MMRDA) decision to terminate the consultancy contract of a consortium led by French rail transport company Systra, which had accused several officials from the state-run planning agency of corruption related to metro projects in the city.

A bench of chief justice Alok Aradhe and justice Arif S Doctor noted that the MMRDA's decision to discontinue the Systra-SMCIPL consortium's contract without providing any reasons was "arbitrary, unfair, and unreasonable". The bench directed the MMRDA to take a fresh decision on whether to discontinue the contract after hearing the consortium out.

The MMRDA, which refuted the corruptio...