Revocation Of Security Clearance 'Harsh', Losing Business At All Indian Airports: Turkey Based Çelebi Argues In Delhi High Court; Order Reserved

The Delhi High Court on Friday (May 23) reserved its verdict on a plea filed by Turkish based company Celebi Airport Services Private Limited challenging the decision of Bureau of Civil Aviation Security (BCAS) revoking its security clearance in the "interest of national security".

Justice Sachin Datta reserved the verdict after hearing Senior Advocate Mukul Rohatgi appearing for Celebi and SGI Tushar Mehta for the Central Government.

The Court has asked the parties to file the written submissions by Monday.

During the hearing today, Senior Advocate Mukul Rohatgi appeared for Celebi and submitted that there has been a violation of natural justice is the case as the company was not given a notice and was not even informed about the proposed action which the government was to take.

“I don't know the extent of punishment you can impose. Both are required under Rules,” he said.

He said that there was a complete violation of Rule 12 of the Aircrafts Security Rules, 2023, which renders the decision of the government nullity and void. It is not voidable. It is nullity and is void, he said.

Rule 12 empowers the Director General to suspend the security clearance, after giving the entity an opportunity of being heard, and for reasons to be recorded in writing, for a period not exceeding one year or cancel the same where there are reasonable grounds to believe, in the interests of national security or civil aviation security or if the entity has contravened or failed to comply with any condition of security clearance or security programme or provision of these rules.

Rohatgi strongly opposed the practice of the government of sharing the inputs and reasons for revoking security clearance in a sealed cover.

He said that the Supreme Court has disapproved of such a practice and thus, the Court should not have seen the sealed cover.

“I should have been told the accusation in some form and I should have been allowed to give reply, get a hearing so that I can tell them I am not guilty,” he said.

Furthermore, Rohatgi said that all the contracts of Celebi across the nation with airport operators are being cancelled as an impact of the case at hand.

“All my contracts across the nation, impact of this decision is that all my contracts with airport operators are being cancelled one by one. I don't blame them because they are saying 'I am sorry sir, Delhi is the boss',” he said.

“I have other airports also. Impact of this is that other airports...I have to have seperate agreements with airport operators. They have removed the base of my case. The base is security clearance. I have contracts with DIAL, MIAL, Adani etc.. I have those agreements on the strength of this clearance. If this clearance is gone, then all my contracts are going, are in the process of going. This is the harshness of the impact of this decision,” Rohatgi concluded.

Yesterday, Mehta had argued that the action of revoking security clearance of the Turkey based company was not a “carte blache” and judicial review is always available to the affected party.

He said that in unprecedented situation when the country faces a security threat, it is impossible for the government to give an opportunity of hearing or reasons for revoking the security clearance.

Rohatgi had argued that neither opportunity of being heard was given to the company nor any reason was mentioned for the revocation.

He said that the onus was on the government to satisfy the Court that there was an apprehension and that the same was so grave that no notice was required to be served.

Mehta had argued that there has been a substantial compliance of Rule 12 of Aircrafts Security Rules, 2023.

SGI had said Celebi's representation was duly considered by the government and the impugned order was passed the next day.

He had concluded by saying that even if Rule 12 is treated to be mandatory, the same was substantially complied with in the facts and circumstances of the case.

On Monday, Centre had opposed the plea saying that disclosure of reasons for revoking the security clearance may not only be counterproductive but will also seriously prejudice national interest and sovereignty and security of the country.

As per a report of Reuters, Celebi in its plea has argued that the decision would impact 3,791 jobs and investor confidence and that the same was issued without any warning to the company.

The Indian government revoked the security clearance of Celebi and its associated companies on grounds related to national security.

The plea states 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 order "fails to disclose any specific or substantive reason except for a vague and general reference to 'national security'... (it) provides no reasons or justification," the plea read.

It further added In that while Celebi's shareholders were registered in Turkey, majority end control of the group is held by companies that do not have Turkish incorporation or origin.