Amid growing tensions and public outcry, Turkey's Çelebi Aviation Holding has initiated legal action against the Indian government following the revocation of its security clearance. Çelebi, a ground handling services provider operating at several major Indian airports, argues that the decision was based on "vague" national security concerns without proper justification.
The Indian government's move to revoke Çelebi's security clearance came amidst increasing public anger in India regarding Turkey's stance on Pakistan in the ongoing India-Pakistan conflict. Junior Aviation Minister Murlidhar Mohol stated that the government had received requests from across India to ban Çelebi, prompting the decision to protect national interests.
Çelebi Airport Services India, in a filing with the Delhi High Court on May 16, 2025, seeks to overturn the decision, asserting that it could impact 3,791 jobs and undermine investor confidence. The company contends that the order lacks specific reasoning and fails to demonstrate how Çelebi poses a threat to national security. Çelebi argues that "mere rhetoric of national security without elaborating upon in what manner is an entity a threat to national security is unsustainable in law".
The legal challenge is expected to be heard on Monday. Çelebi maintains that while its shareholders are registered in Turkey, the "majority end control" of the group is held by companies without Turkish incorporation or origin. Actera Partners II L.P., a Jersey-registered fund, holds 50% ownership in Celebi Havacilik Holding AS, while Alpha Airport Services BV, a Dutch-registered entity, holds 15%.
Prior to the revocation, Çelebi managed 540,000 tons of cargo across 58,000 flights at nine Indian airports, providing passenger services, load control, flight operations, and ramp services. The company emphasizes that it had undergone thorough background checks and security verifications by Indian national security and intelligence agencies before commencing operations.
The Shiv Sena party, a key ally in the Modi government, had staged protests against Çelebi in Mumbai, demanding that the city's airport sever ties with the company. Following the clearance revocation, Delhi Airport announced the official end of its association with Çelebi for ground handling and cargo operations.
The situation has negatively impacted Çelebi's stock value, with shares plunging on the Istanbul Stock Exchange. Celebi Hava Servisi AS shares initially fell 10% on May 16, 2025, following the security clearance revocation. With the previous day's losses factored in, the company's shares have crashed 20% in just 48 hours.
Çelebi has issued a clarification, asserting that allegations regarding its ownership are baseless and that it adheres to all security norms with a professional attitude. The company hopes to regain its position in the Indian market.