Turkey’s Celebi challenges contract revocation in Bombay HC

Celebi Nas Airport Services India has filed an arbitration petition urging the court to issue directions to restrain the airport authorities from appointing a new company in its place

MUMBAI: The Indian subsidiary of Turkish ground-handling firm Celebi Aviation Holding on Wednesday approached the Bombay high court to challenge the Indian government’s revocation of its security clearance, which resulted in the termination of its agreement at Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA).

Mumbai, India - October 17, 2024: Mumbai Airport closed for 6 hours, Operations temporary closure of flight operations scheduled between 11 AM and 5 PM is required for maintenance work on the airport's two cross runways, RWY 09/27 and RWY 14/32 in Mumbai, India, on Thursday, October 17, 2024. (Photo by Satish Bate/ Hindustan Times) (Hindustan Times)

Celebi Nas Airport Services India has filed an arbitration petition urging the court to issue directions to restrain the airport authorities from appointing a new company in its place.

The petition was filed days after the Adani Group-led Mumbai International Airport Limited (MIAL), which operates CSMIA, terminated its agreement with Celebi and appointed Kolkata-based firm Indo Thai Airport Services on a temporary basis for three months until it finalises a long-term partner.

CSMIA was among several airports across the country that terminated their agreements with Celebi earlier this month. This was after the Bureau of Civil Aviation Security (BCAS), India’s top aviation security regulator, revoked the Turkish firm’s security clearance, effectively barring it from continuing its operations in Indian airports. The decision, according to BCAS, was taken in view of “national interests”.

While the official reasons were not detailed, the move follows heightened diplomatic tensions. Turkey had recently backed Pakistan and condemned India’s counter-terrorism strikes in Pakistan and Pakistan-occupied Kashmir following the Pahalgam terror attack in April.

In response to the revocation, Celebi’s Indian subsidiary issued a statement distancing itself from political or national affiliations. “We are not a Turkish organisation by any standard and adhere fully to globally accepted practices of corporate governance, transparency, and neutrality, with no political affiliations or links to any foreign government or individuals,” the company said.

Celebi filed three separate lawsuits, two of which challenged MIAL’s revocation of its contract on the grounds of security clearance. The third plea is filed against BCAS, which states that the agency’s decision was procedurally erroneous.

On May 16, Celebi had filed a similar petition in the Delhi high court, even as aviation officials said airport operations nationwide continued without disruption as alternative arrangements were implemented. In its plea, the company had said that the BCAS’s decision to revoke its clearance by merely citing national security, without specific justification, was “vague” and “unsustainable in law.”

Celebi Aviation has had a significant presence in India’s aviation sector. Since entering the Indian market via Mumbai airport, the company has expanded to nine airports across the country. These include major hubs such as Mumbai, Delhi, Bengaluru, Hyderabad, Chennai, Cochin, Kannur, Goa, and Ahmedabad. The firm’s Indian operations cover a wide range of services, including passenger assistance, flight operations, cargo handling, warehouse management, and bridge operation services.