Turkiye's Celebi Hava Servisi explores legal remedies to challenge termination of pacts in India

New Delhi: Turkiye's Celebi Hava Servisi AS on Friday said all available administrative and legal remedies will be pursued to challenge the unilateral termination of various licence and concession agreements in India after the security clearance for its India company was revoked.

Citing national security interest, the Bureau of Civil Aviation Security (BCAS) on Thursday revoked the security clearance for the ground handling and cargo services provider Celebi.

The development came days after Turkiye backed Pakistan and condemned India's strikes on terror camps in the neighbouring country.

Following the BCAS decision, operations of various entities of Celebi Hava Servisi AS have been suspended. They are Celebi Airport Services India Pvt Ltd (CASI), Celebi GH India Pvt Ltd (CGHI), Celebi Nas Airport Services India Pvt Ltd, Celebi Delhi Cargo Terminal Management India Pvt Ltd, and Celebi GS Chennai Pvt Ltd (CGSC).

Celebi, operating in the Indian aviation sector for over 15 years and employing over 10,000 people, was offering its services at nine airports, including Delhi, Mumbai, and Ahmedabad.

In a filing to Turkiye's stock exchange on Friday, Celebi Hava Servisi AS said four concession and licence agreements executed between its company's subsidiaries and the relevant Indian airport authorities have been unilaterally terminated.

The concession agreement, valid until 2034, executed between Celebi Delhi Cargo Terminal Management India Pvt Ltd and Delhi International Airport Ltd (DIAL) has been terminated. Celebi has 74 per cent stake in the venture.

Also, the licence agreement for ground handling services between Celebi GH India Pvt Ltd (CGHI), which is 61 per cent owned by Celebi, and Ahmedabad International Airport Ltd (AIAL) has been terminated. The pact was valid till 2032, as per the filing.

"The Bridge Mounted Equipment Service Agreement valid until 2036 and the Concession Agreement Ground Handling Services valid until 2029, executed between Celebi Nas Airport Services India Pvt Ltd (Celebi Nas), 59 per cent owned by our company and Mumbai International Airport Ltd (MIAL)," has been terminated, the filing said.

The concession agreement, valid till 2030, executed between CASI and DIAL has also been terminated. CASI is 99.9 per cent owned by Celebi.

Emphasising that none of its subsidiaries have ever engaged in any activity that would contravene national security considerations or relevant laws and regulations of India, Celebi Hava Servisi AS said its company "will pursue all available administrative and legal remedies to challenge these unfounded allegations and to seek the annulment of the aforementioned terminations".

With reference to the BCAS order, Celebi Hava Servisi AS, in a filing on Thursday, said its company will pursue all administrative and legal remedies to clarify these unfounded allegations and reverse the imposed orders.

CASI was operating at Delhi, Bengaluru, Cochin, Hyderabad, Goa, (GOX) and Kannur airports.

CGHI was operating at Ahmedabad airport, Celebi Nas Airport Services India Pvt Ltd at Mumbai airport, Celebi Delhi Cargo Terminal Management India Pvt Ltd at Delhi airport and Celebi GS Chennai Pvt Ltd at Chennai airport.

Meanwhile, on Thursday, Civil Aviation Minister K Rammohan Naidu said national interest and public safety are paramount and non-negotiable.

Hours after BCAS revoked the security clearance for Celebi, the civil aviation ministry, on Thursday, said the ministry was in active coordination with airport operators to manage the transition smoothly. "Efforts are being made to ensure that employees working with Celebi are retained and continue to contribute," it added.