The Indian aviation sector witnessed a major development this week as the Delhi High Court dismissed petitions filed by Turkey-based Celebi Airport Services India Pvt Ltd and Celebi Delhi Cargo Terminal Management India Pvt Ltd. The petitions challenged the revocation of their security clearance by the Bureau of Civil Aviation Security (BCAS). This decision marks a significant setback for Celebi, which has been operating in India for over 15 years and employs more than 10,000 people.
The ruling has serious implications for Celebi’s business operations in India, given its extensive presence at nine major airports. With contracts reportedly being cancelled, the company’s future in India now hangs in the balance.
Why Did BCAS Revoke Celebi’s Security Clearance?
The setback for Celebi stems from a decision made by BCAS on May 15, 2025. The aviation watchdog revoked Celebi’s security clearance just days after Turkey publicly backed Pakistan and condemned India’s strikes on terror camps in the neighbouring country.
The move came amid rising calls within India to boycott companies linked to Turkey. Critics pointed to Turkey’s political stance and alleged it raised national security concerns, especially for a company operating in sensitive areas of India’s airports.
BCAS argued that companies like Celebi, which handle ground operations and cargo at airports, have direct access to critical infrastructure and aircraft, making security clearances essential.
Celebi’s Operations in India
Celebi has been a significant player in India’s aviation ecosystem since entering the market more than a decade ago. It provides crucial ground handling and cargo terminal management services at nine Indian airports. Over the years, it has built a workforce of over 10,000 Indian employees and established itself as a reliable partner for airlines and airport operators.
The setback for Celebi comes at a time when the Indian aviation industry is expanding rapidly. Losing security clearance could jeopardize the company’s ability to continue operations and maintain its contracts with airports across the country.
Celebi’s Argument in Court
In a hearing before the Delhi High Court on May 21, Celebi argued that the government’s decision to revoke its security clearance was “against the principles of natural justice.” Represented by senior counsel Mukul Rohatgi, Celebi claimed the revocation had already begun to disrupt its business, with multiple contracts being cancelled.
“We are an Indian company. All our employees are Indian nationals. Our business and contracts have been affected because of this decision,” Rohatgi told the court.
The company also sought to distance itself from the political controversy surrounding Turkey. Celebi clarified that it is not linked to Turkish President Recep Tayyip Erdoğan’s daughter, Sümeyye Erdoğan, as had been alleged in some quarters. Instead, it asserted that the parent organization’s shareholding is limited to Can and Canan Celebioglu (each holding 17.5%), with the majority 65% owned by international institutional investors who have no political affiliations.
Despite these clarifications, the court sided with the government’s security concerns, delivering a clear setback for Celebi.
Government’s Stand on the Matter
Defending the revocation, Solicitor General Tushar Mehta emphasized the government’s “plenary powers” in matters related to national security. On May 22, he argued that ground handling firms like Celebi have extensive access to airports, and any potential threat must be preemptively addressed.
“The government is dealing with the most delicate subject of civil aviation, national security, and sovereignty of the nation. Plenary powers rest with the government to avoid any potential threat,” Mehta stated.
He further noted that the Director General of BCAS could exercise sui generis powers to act against any perceived threat to aviation security, reinforcing the legality of the revocation decision.
Why This Is a Major Setback for Celebi
The Delhi High Court’s dismissal of Celebi’s plea has dealt a major setback for Celebi, not only from a legal standpoint but also from a business continuity perspective. Here’s why:
- Loss of Contracts: Without security clearance, Celebi risks losing its contracts at Indian airports.
- Operational Disruption: The company’s ground handling and cargo operations could be severely impacted, leading to logistical challenges for airlines.
- Reputational Damage: Being at the center of a national security controversy may deter future partnerships and investments.
- Employee Uncertainty: With over 10,000 employees in India, there are concerns about job security and operational stability.
The case highlights the importance of geopolitical factors in business operations, particularly for foreign firms in sensitive sectors like aviation.
Celebi’s Global Background and Indian Presence
Founded in Turkey, Celebi is a global ground handling services provider with operations in several countries. In India, it has been active for over 15 years, providing services at major airports including Delhi and Mumbai. The company has played a crucial role in supporting airline operations through efficient baggage handling, cargo services, and ramp services.
Despite its contribution to India’s aviation sector, the current setback for Celebi underscores the vulnerability of foreign firms to shifting geopolitical dynamics.
Future of Celebi in India
With the court’s verdict and BCAS’s revocation standing firm, the road ahead for Celebi in India appears challenging. The company may consider the following options:
✅ Appealing to Higher Courts: Celebi could approach the Supreme Court to challenge the Delhi High Court’s decision.
✅ Engaging Diplomatically: Diplomatic efforts between India and Turkey may be needed to address broader political concerns.
✅ Restructuring Indian Operations: Celebi may attempt to transfer ownership or rebrand its Indian unit to allay security concerns.
However, success on any of these fronts remains uncertain. The setback for Celebi is a reminder to all foreign firms about the critical need to align with local political and security considerations.
Industry Impact and Reactions
The case has sparked debate within India’s aviation sector. Some experts argue that removing a major ground handling player could disrupt airport operations temporarily. Others believe it opens up opportunities for Indian firms to step in and fill the void left by Celebi.
An aviation analyst noted:
“The setback for Celebi is a warning for all foreign players in sensitive sectors. National security considerations will always take precedence over commercial interests.”
Key Takeaways
📌 Delhi HC Verdict: Celebi’s plea against security clearance revocation dismissed.
📌 Reason for Revocation: BCAS acted days after Turkey backed Pakistan amid geopolitical tensions.
📌 Business Impact: Operations at nine airports and over 10,000 Indian jobs at risk.
📌 Government’s Stand: Plenary powers allow revocation to protect national security.
📌 Celebi’s Next Steps: Supreme Court appeal or operational restructuring likely.
Final Word
The Delhi High Court’s decision to uphold BCAS’s revocation of security clearance marks a defining moment for Celebi in India. This setback for Celebi highlights how geopolitical tensions can quickly spill over into business and regulatory environments.
As Celebi weighs its next steps, the Indian aviation sector will be watching closely. For now, the company faces an uphill battle to retain its foothold in one of the world’s fastest-growing aviation markets.