Bombay high court halts Mumbai airport's bid to replace Turkey's Celebi

NEW DELHI: In a temporary reprieve for Turkish aviation firm Celebi, the Bombay high court on Monday directed Mumbai International Airport Limited (MIAL) to hold off on awarding new contracts for ground and bridge handling services at the city's international airport.

The interim order was passed by Justice Somasekhar Sundaresan, who said that no conclusive steps should be taken on the tenders until Celebi’s petitions are heard after the court’s summer recess in June, reported news agency PTI.

The legal dispute stems from the recent revocation of security clearance for Celebi Airport Services India, a subsidiary of Turkey-based Celebi, by India’s Bureau of Civil Aviation Security (BCAS). The security clearance was rescinded earlier this month, citing national security concerns, prompting airports across the country to terminate contracts with Celebi’s Indian affiliates.

The move followed diplomatic tensions after Turkey expressed support for Pakistan during India’s Operation Sindoor, a military offensive conducted in response to cross-border terrorism. In the aftermath, Celebi’s Indian operations, including those at key airports like Mumbai and Delhi, came under scrutiny.

In Mumbai, Celebi Nas Airport Services India, which handles bridge and ground services, filed three separate petitions challenging both the BCAS's decision and MIAL’s termination of contracts. The company contended that the government’s actions were arbitrary and legally unsustainable. Celebi holds a 59 per cent stake in the joint venture operating at the Mumbai airport.

The petitions request the high court to annul the BCAS’s order cancelling its security clearance and to reverse MIAL’s termination of key agreements, including the Bridge Mounted Equipment Service Agreement, Ground Handling Services contract, and the Concession Agreement. The firm also asked the court to suspend the tender process initiated by MIAL on May 17 for selecting a replacement agency.

Meanwhile, two other group companies, Celebi Airport Services India and Celebi Delhi Cargo Terminal Management India, have approached the Delhi high court seeking similar relief following cancellation of their airport contracts in the capital.