The Bombay High Court has ruled that decisions on granting or refusing security clearance for projects of strategic importance mainly lie with the executive, as these matters are closely linked to national security.

The important ruling was delivered by a division bench of Justice M.S. Karnik and Justice Sharmila U. Deshmukh, while explaining the roles and limits of different organs of the government in such matters.

The bench was hearing a writ petition filed by Thakur Infraprojects Private Limited, which is the lead partner in a joint venture with “EVRASCON”, an Azerbaijani company.

Why Security Clearance Was Denied:
The petition challenged the decision of the Union Government to deny security clearance to EVRASCON. This clearance was required for participating in two large infrastructure tenders issued by the City and Industrial Development Corporation of Maharashtra. The tenders were related to integrated infrastructure development works in the Navi Mumbai Airport Influence Notified Area (NAINA).

The Ministry of Home Affairs denied the security clearance after considering Azerbaijan’s stand on the Kashmir issue and its strategic alignment with Pakistan and Turkey.

Court’s observations on the Project :

• The tenders pertain to publicly critical and vital infrastructure works for NAINA so security clearance has to be considered as a mandatory requirement.

• The projects in question are related to critical infrastructural development in the NAINA region, which is closely associated with the development and operationalisation of the Navi Mumbai International Airport.

• National security assessments often involve complex evaluations based on intelligence inputs, diplomatic considerations, and strategic factors, which are best handled by the executive authorities.

• The court stated:

“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.”

Limits of Judicial Review:
The bench highlighted that the power of courts to review such decisions is limited. It held that matters related to national security and foreign policy mainly fall within the powers of the executive.

The Court said that in such cases, judicial review is limited to examining whether the decision-making process is affected by mala fides, arbitrariness, or illegality. Courts cannot conduct a detailed re-evaluation of the intelligence inputs or strategic assessments on which the executive has based its decision.

National Security Over Business Interests:
The bench also noted that national security concerns are more important than the economic or commercial interests of private parties.

As a result, the Bombay High Court refused to interfere with the decision of the Union Government and dismissed the writ petition.

Case Details: Thakur Infraprojects Private Limited v. State of Maharashtra & Ors. [Writ Petition No. 10537 of 2025]