In a significant legal development, Turkey-based Celebi's Indian subsidiary, Celebi Nas Airport Services India, has approached the Bombay High Court to challenge the termination of its contract by Mumbai International Airport Limited (MIAL) and the revocation of its security clearance by the Indian government.
The dispute arises after MIAL ended its agreement with Celebi and the Bureau of Civil Aviation Security (BCAS), functioning under the Ministry of Civil Aviation, cancelled the company's security clearance citing concerns over “national security.” This move followed recent geopolitical tensions, notably Turkey's expressed support for Pakistan amid ongoing India-Pakistan issues.
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The decisions taken against us are arbitrary and unlawful, Celebi submitted in its petition, requesting the court to set aside both the termination and the security clearance revocation.
Celebi Nas has filed three separate petitions—two arbitration petitions concerning the termination of its contracts with MIAL and one writ petition challenging the decision made by BCAS. According to the Bombay High Court's website, the arbitration matters will be heard by a single-judge bench, while the writ petition will be considered by a division bench.
The terminated agreements include the Concession Agreement and the Bridge Mounted Equipment Service Agreement, both crucial for Celebi’s ground handling operations at Mumbai airport.
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"We seek the suspension and annulment of BCAS's order that withdrew our security clearance and request that the terminations executed by MIAL be nullified," Celebi urged the court.
As an interim measure, Celebi has also requested the court to direct MIAL not to appoint any replacement ground handling agency until the legal proceedings are concluded.
The BCAS decision has had far-reaching consequences for Celebi's presence in India. Following the security clearance cancellation, several Indian airports, including those in Delhi and Mumbai, terminated their contracts with Celebi's subsidiaries.
"The revocation impacts all of Celebi’s associate entities in India, effectively disrupting ground handling operations at major airports," said an official familiar with the matter.
In a related move, two other entities affiliated with the Celebi group—Celebi Airport Services India and Celebi Delhi Cargo Terminal Management India—have approached the Delhi High Court. These petitions similarly challenge the security clearance withdrawal and subsequent contract cancellations by the Delhi airport operator.
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The outcome of these petitions in the Bombay and Delhi High Courts is expected to significantly impact foreign participation in India's aviation services sector, particularly in high-security operational areas like ground handling.
The ongoing legal battle underscores rising concerns about how diplomatic relations and security considerations are influencing commercial contracts and foreign investments in India’s aviation industry.
