“No Choice But To Float Tender For Cargo Handler At Chennai Airport After Çelebi Termination”: AAI To Madras HC

Madras High Court

The Airports Authority of India on Monday has approached the Madras High Court seeking permission to appoint a new ground handling and cargo services provider at Chennai International Airport.

This move comes after the recent termination of Turkish company Çelebi Airport Services India’s contract, following national security concerns linked to its parent country’s geopolitical stance.

According to AAI, the smooth operation of Chennai airport requires three ground handlers, and with Celebi’s exit, the authority has no choice but to begin a fresh tender process for a replacement.

Contract Termination Tied To Security Clearance

The decision to remove Celebi stems from the withdrawal of its security clearance by the Bureau of Civil Aviation Security (BCAS). This was prompted by Turkey’s public support for Pakistan in the aftermath of the Indo-Pak conflict, raising red flags over Celebi’s continued operations in India. The company has challenged the cancellation in both the Delhi and Madras High Courts.

AAI clarified that any tender floated to bring in a new service provider would be made conditional on the outcome of the ongoing legal proceedings initiated by Celebi.

Celebi Alleges Risk To Property, Cites Mumbai Relief

Appearing before the High Court, Celebi’s counsel P.S. Raman argued that the firm’s high-value equipment and proprietary software remain in AAI’s custody and are at risk of being handed over to third parties if the tender proceeds.

He referenced a similar case in the Bombay High Court, where Celebi reportedly secured relief, implying that the situation warranted a stay on the tender process until the matter is resolved.

AAI Responds

In response, Solicitor General Tushar Mehta, representing AAI, distinguished the Chennai situation from that in Mumbai. He pointed out that Mumbai airport is jointly operated by a private entity (Adani Group) and AAI, whereas Chennai airport is fully government-managed.

He assured the court that no incoming contractor would be allowed to use Celebi’s systems or hardware, and that the tendering process would not move forward until the legal dispute is settled.

The High Court took both parties’ arguments on record and stated that Celebi could seek legal remedy if AAI fails to adhere to its assurances. The court also allowed Celebi to request an official inventory of its software and equipment currently at the airport.

Parallel Legal Challenges

The company’s writ petition challenging the revocation of its security clearance will be heard on June 24, 2025.

Its original civil suit before the Madras High Court is scheduled for hearing on July 7, 2025.

Related disputes over Celebi’s services at Delhi airport are also under review by the Delhi High Court.

AAI maintains that operational needs compel it to initiate the process of hiring a new ground handler—though it has pledged not to finalize any deal until the court delivers its verdict.