CHENNAI | JUNE 7 2025
The Airports Authority of India (AAI) informed the Madras High Court on Monday that it will float a tender to appoint a new ground handling and cargo operator for Chennai Airport. This move comes in the wake of the termination of the contract with Turkish firm Çelebi Airport Services India, citing national security concerns.
ÇELEBI CONTRACT TERMINATED OVER SECURITY CONCERNS
Çelebi’s services at various Indian airports were terminated following the revocation of its security clearance by the Bureau of Civil Aviation Security (BCAS). The revocation came after the government of Turkey publicly supported Pakistan during a recent four-day Indo-Pak conflict.
Çelebi has since challenged the termination and the revocation of its security clearance before multiple High Courts, including those in Madras, Delhi, Bombay, and Gujarat.
AAI SUBMITS PLAN TO ENSURE UNINTERRUPTED AIRPORT OPERATIONS
During proceedings before Justice Abdul Quddhose, the AAI emphasized the operational necessity of having three ground handling service providers at Chennai Airport. With Çelebi’s exit, a new operator must be appointed.
Representing AAI, Solicitor General of India Tushar Mehta submitted:
“With the recent termination of Çelebi’s services, the AAI has no option but to float a tender to appoint another ground handler.”
However, SG Mehta assured the Court that:
“Any such tender would be subject to the outcome of the litigation initiated by Çelebi before the High Courts of Delhi and Madras in the matter.”
He further clarified that any third party appointed pursuant to the tender will not be allowed to use Çelebi’s software or equipment.
“Any third party appointed in Çelebi’s place, pursuant to a tender floated by AAI for the Chennai airport, would not be allowed to use Çelebi’s equipment or software,” said Mehta.
“Such a tender would not be finalised while Çelebi’s litigation is pending,” he added.
ÇELEBI RAISES CONCERNS OVER ASSETS AT CHENNAI AIRPORT
Representing Çelebi, Senior Advocate PS Raman contended that the company’s proprietary equipment and software—worth crores—remain under the control of AAI. He expressed concern that these assets could be improperly accessed or handed over to a new service provider.
“The Bombay High Court has already granted the firm interim relief in a similar matter,” noted Raman.
To this, SG Mehta responded that the situation in Mumbai is different, stating:
“The Mumbai International Airport’s operations are being managed by a private party (Adani) in collaboration with the AAI. The Chennai airport is only being managed by AAI.”
The Madras High Court recorded all submissions and ruled that parties can return to court for relief if any undertaking is violated. The Court also allowed Çelebi to approach the AAI to obtain an inventory of its equipment and software.
PENDING LEGAL PROCEEDINGS ACROSS MULTIPLE HIGH COURTS
Çelebi has also filed a separate writ petition challenging the revocation of its security clearance, in which notice has been issued. That case is scheduled for hearing on June 24, 2025.
Meanwhile, the Delhi High Court has already heard related arguments concerning Çelebi’s services at the Delhi International Airport and has reserved its verdict.The Madras High Court will hear the original application concerning Chennai airport operations again on July 7, 2025.
Additional Solicitor General of India AR L Sundaresan also appeared on behalf of AAI during the proceedings.
