India’s ban on Turkish firm Celebi triggers sharp 10% stock decline

Amid rising geopolitical tensions following India’s Operation Sindoor targeting terror infrastructure in Pakistan and PoK, Turkey’s vocal support for Pakistan and reports of Turkish drones assisting Pakistan have intensified scrutiny on Turkish companies operating in India

Turkish aviation services provider Çelebi Hava Servisi AS witnessed a sharp decline in its share value after the Indian government revoked the security clearance of its Indian subsidiary, Celebi Airport Services India, citing national security grounds.

The decision was announced by India’s Bureau of Civil Aviation Security (BCAS) on May 15, leading to a 10% drop in Çelebi’s shares on the Istanbul Stock Exchange the following day. This follows an earlier 10% fall, amounting to nearly a 20% decline over two trading sessions.

The move comes amid heightened geopolitical tensions following India’s Operation Sindoor—an airstrike operation targeting terror infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK). Turkey's outspoken support for Pakistan during the episode and reports of Turkish drones aiding Pakistan have reportedly intensified scrutiny of Turkish entities operating in India.

National security sparks revocation

In its official notification, BCAS cited national security as the rationale for revoking the clearance initially granted to Celebi in November 2022 under the 'Ground Handling Agency' category. "In view of emerging concerns and the need to protect national interests, the security clearance stands cancelled with immediate effect," the order stated.

Subsequent to the revocation, Delhi International Airport Ltd (DIAL) terminated Celebi’s role in cargo and ground handling operations at Indira Gandhi International Airport. DIAL assured smooth operational continuity by coordinating with other service providers such as AISATS and Brid Group, while also safeguarding the interests of employees affected by the decision.

Reacting to the controversy, Celebi Airport Services India issued a statement distancing itself from any foreign political influence. "We operate as an independent corporate entity in India, governed by principles of transparency and global best practices. We have no affiliation with any foreign government or political figure," the company asserted.

Alleged Erdogan family ties

Celebi has maintained operations in India for over 15 years and is active at nine major airports, including Mumbai, Delhi, Bangalore, Hyderabad, and Chennai.

The issue has also drawn attention on social media, with some unverified reports alleging links between Celebi Aviation Holding and Sumeyye Erdogan Bayraktar, daughter of Turkish President Recep Tayyip Erdogan. However, the company has not addressed these allegations publicly.

Minister of State for Civil Aviation, Murlidhar Mohol, confirmed the government's action, stating it was in response to multiple public representations. “We have acted in alignment with national interest, following concerns raised across several quarters,” Mohol posted on X.