Mumbai, Dec 14 (IANS): In a drastic move, the Mumbai Metropolitan Region Development Authority (MMRDA) on Friday terminated its Mumbai Monorail contract with the joint venture Larsen & Toubro and SCOMI Engineering BHD (LTSE) for failure to perform and fulfill the contractual obligations, a top official said here.

MMRDA Metropolitan Commissioner R.A. Rajeev termed the decision as "unfortunate" and said it had given LTSE a long rope rope to enable them recover from situation.

"However, LTSE failed to supply the rolling stock trains, failed to operate and maintain the system and quality of services on the entire corridor or rectify defects as per the contractual clauses," Rajeev said.

He added that the contract was signed in 2008, and India's first nine-km long Monorail Phase 1 from Chembur to Wadala was thrown open to public in February 2014.

However, the LTSE's failure to fulfill its commitments resulted in inordinate delay in starting the Phase 2, from Wadala to Sant Gadge Maharaj Chowk.

Rajeev said that since the LTSE failed to respond even to a legal notice served by it, the MMRDA will now encash the Rs 200 crore bank guarantee provided by the contractor and implement the project on its own.