The Mumbai Metro Rail Corporation Collapses: A Failure of Promissory Estoppel

Barely a month ago, the Maharashtra government was hailed for its innovative project, the Mumbai Metro 3. However, things turned sour when a court intervened, stating that the project's land acquisition for the elevated section of the metro was illegal and would be scrapped. The state government had promised in a public meeting that the project would benefit local residents. Promissory estoppel, a doctrine under contract law where a party's promise is relied upon by another, comes into play here. The state government's promise (a unilateral promise where no consideration was given) was acted upon by the contractors and investors, who took steps to execute the project.