L&T, MTNL clash over Phase II CCTV network: Who’s watching whom?

A controversy has surfaced over Mumbairsquos CCTV surveillance network with staterun telecom operator MTNL alleging that Larsen amp Toubro LampT connected thousands of cameras to its network without authorisationIn a complaint to the Mumbai Police Commissioner MTNL has sought the registration of an FIR against the company citing unauthorised use of government telecom infrastructure and potential misuse of public funds under the Mumbai City Surveillance MCS Project midday has accessed a copy of the letterMTNL flags lsquounauthorised usersquogtgt In its February 9 2026 letter MTNL has raised concerns over alleged irregularities in the execution of the projectgtgt The complaint claims that LampT connected nearly 5000 Phase II CCTV cameras to MTNLrsquos network without formal approval It further alleges that this led to revenue losses for the state and possible misappropriation of funds allocated by the Maharashtra governmentgtgt MTNL has termed the move a breach of contractual obligationsgtgt It also alleged that since 2021 LampT has continued to use and expand connectivity on its network without the required authorisation or payments taking advantage of MTNLrsquos mandate to ensure uninterrupted surveillance connectivityWhat the MCS projectgtgt The Mumbai City Surveillance Project is a key public safety initiative aimed at strengthening law enforcement capabilitiesgtgt The CCTV network is used to monitor sensitive locations manage large gatherings and religious events regulate traffic and assist in crime prevention and investigationKey points from MTNLrsquos complaintgtgt Phase I around 2015 had defined approvals and payment structuresgtgt No formal extension agreement was executed for Phase IIgtgt From 2021 onwards connectivity was allegedly used without a valid contractgtgt MTNL has sought an audit of this period recovery of dues and accountabilityLampT respondsgtgt Responding to the allegations an LampT spokesperson said the issue is limited to account reconciliation between consortium partners and not any wrongdoinggtgt MTNL CMS Computers Ltd and LampT are part of a consortium formed for the design development implementation and maintenance of the CCTV surveillance system for Mumbai with LampT as the lead partner under an agreement with the Government of Maharashtragtgt The current matter relates to reconciliation of accounts between MTNL and LampT with respect to certain pending invoices under Phase I LampT has submitted all documents supporting records in line with the contractual framework including expense adjustments towards maintenance of servicesgtgt Discussions between the two parties are ongoing and are limited to the reconciliation of accountsgtgt With respect to Phase II payments are to be received from state govt upon achievement of the lsquogo liversquo milestone towards which MTNL and LampT are working together Any assertion regarding Phase II payments is prematuregtgt ldquoThis is a matter of account reconciliation and is being addressed through discussions Any claim that LampT has defrauded the exchequer or failed in its contractual obligations is entirely false and maliciousrdquo the spokesperson saidNo response from MTNLRepeated attempts by midday to seek a response from MTNL did not elicit a reply till press time