Celebi takes legal route after India revokes security clearance, axes airport deals: Report

Turkey’s Celebi Group, a major airport ground handling provider in India, has mounted a legal challenge against the Indian government’s abrupt move to revoke its security clearance — a decision the company says endangers nearly 3,800 jobs and undermines investor confidence.

On May 16, Celebi Airport Services India filed a plea in the Delhi High Court, asking it to overturn the government’s decision, which the company claims was made without prior warning. Reuters cited the court filing as stating, “Mere rhetoric of national security without elaborating upon in what manner is an entity a threat to national security is unsustainable in law.”

Celebi further clarified in its petition that while its shareholders are registered in Turkey, its "majority end control" lies with globally reputed companies that are neither incorporated in Turkey nor of Turkish origin. The Delhi High Court is expected to hear the matter on Monday, as per the Reuters report.

The copy will be updated with reaction from the government when it is shared.  

The Turkish company's move follows a revocation of security clearance by the Bureau of Civil Aviation Security (BCAS) on May 15, citing national security interests. This action coincided with Turkey publicly backing Pakistan and criticising India’s military actions across the border post Pahalgam terror attack.

In a stock exchange filing in Turkiye, Celebi Hava Servisi AS stated that four concession and licence agreements between its Indian subsidiaries and local airport authorities have been unilaterally terminated. These include:

• A cargo terminal concession agreement with Delhi International Airport Ltd (DIAL), valid until 2034, through Celebi Delhi Cargo Terminal Management India Pvt Ltd (74% owned by Celebi).
• A ground handling licence with Ahmedabad International Airport Ltd, valid till 2032, via Celebi GH India Pvt Ltd (61% owned).
• Two agreements with Mumbai International Airport Ltd involving bridge mounted equipment and ground handling services, valid until 2036 and 2029 respectively, under Celebi Nas Airport Services India Pvt Ltd (59% owned).
• A separate concession deal with DIAL through Celebi Airport Services India Pvt Ltd (99.9% owned), valid until 2030.

Celebi maintained that its subsidiaries have not engaged in any activity that would breach Indian laws or national security, and committed to pursuing all administrative and legal channels to contest what it calls "unfounded allegations."

The security revocation has led to the suspension of operations for all Celebi-affiliated entities in India, which employed over 10,000 personnel and operated across nine airports, including Delhi, Mumbai, and Ahmedabad.

Civil Aviation Minister K Rammohan Naidu emphasised on May 15 that national interest and public safety are paramount and non-negotiable. The aviation ministry also assured that it is working with airport operators to ensure a smooth operational transition.

(With inputs from agencies)