Bombay High Court Declines To Interfere With Denial Of Security Clearance To Azerbaijani Company For Work At Navi Mumbai Airport

The Bombay High Court has held that decisions relating to the grant or denial of security clearance in projects of strategic importance fall primarily within the domain of the executive and are closely connected to considerations of national security. The Court observed that while judicial review is available in limited circumstances, courts ordinarily exercise restraint in matters involving national security, diplomatic relations, and strategic assessments undertaken by the Union Government.A division bench of Justices Makarand Karnik and Sharmila Deshmukh was hearing a writ petition filed by Thakur Infraprojects Private Limited, the lead partner of a joint venture with “EVRASCON”, an Azerbaijani company. The petition challenged the denial of security clearance by the Union Government to EVRASCON in connection with two large infrastructure tenders issued by the City and Industrial Development Corporation of Maharashtra (CIDCO) relating to integrated infrastructure development works in the Navi Mumbai Airport Influence Notified Area (NAINA). The Ministry of Home Affairs had denied the security clearance, considering Azerbaijan's stance on the Kashmir issue and its strategic alignment with Pakistan and Turkey.The Court noted that the tenders pertain to publicly critical and vital infrastructure works for NAINA. The security clearance has to be regarded as a mandatory requirement.The High Court observed that the projects in question related to critical infrastructure development in the NAINA region, which is closely linked to the development and operationalisation of the Navi Mumbai International Airport. The Court noted that national security assessments often involve complex evaluations based on intelligence inputs, diplomatic considerations, and strategic factors, which are best handled by the executive authorities. It observed:“In projects of strategic or infrastructural importance, the Government is free to adopt such measures as it considers necessary to safeguard national security… issues concerning foreign relations and diplomatic posture fall within the domain of executive policy. The evaluation of the relationship between sovereign States, including the assessment of whether a particular country maintains association or cooperation with entities inimical/hostile to India's security interests, is fundamentally a matter within the domain of the executive government.”Emphasising the limited scope of judicial review in such matters, the Court held that decisions concerning national security and foreign policy fall within the executive's domain. Judicial review in such cases is confined to examining whether the decision-making process is vitiated by mala fides, arbitrariness, or illegality. Courts cannot undertake a substantive reassessment of intelligence inputs or strategic assessments forming the basis of the executive's decision.The Court further observed that economic or commercial interests of private parties cannot override concerns relating to national security. In matters involving security clearance for foreign entities in projects of strategic importance, the safety and integrity of the nation must take precedence over contractual or commercial expectations.In view of these findings, the High Court declined to interfere with the decision of the Union Government and dismissed the writ petition, holding that the denial of security clearance was based on considerations of national security which fall within the executive's policy domain.Case Title: Thakur Infraprojects Private Limited v. State of Maharashtra & Ors. [Writ Petition No. 10537 of 2025]Citation: 2026 LiveLaw (Bom) 106Click Here To Read/Download Order

Bombay High Court Declines To Interfere With Denial Of Security Clearance To Azerbaijani Company For Work At Navi Mumbai Airport

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Bombay High Court Declines To Interfere With Denial Of Security Clearance To Azerbaijani Company For Work At Navi Mumbai Airport

Saksham Vaishya

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