MEA bars BLS International from future tenders for two years

Dubai/New Delh: The Ministry of External Affairs (MEA) has barred BLS International Services Limited, a key player in Indian visa and passport outsourcing, from participating in any future tenders for a period of two years. The order, issued last week, follows a series of complaints from applicants and legal cases reportedly filed against the company.

However, the debarment will not affect BLS’s ongoing operations or existing contracts with Indian missions, the Ministry clarified. The company will continue to provide services under its current agreements. BLS International, a publicly listed entity, handles consular, visa, passport, attestation, and biometric services for Indian missions in 19 countries. The company operates 58 centres across countries including the United Arab Emirates, Saudi Arabia, Spain, Poland, and the United States, processing more than 1.7 million applications annually.

In a regulatory filing to stock exchanges, BLS confirmed it had received the MEA's debarment order on October 10. The company stated that the action relates to certain complaints and litigation matters but stressed that this was "a routine development in the visa outsourcing industry." It also said it was reviewing the order and may consider appropriate legal recourse.

The Ministry has not disclosed the exact nature of the complaints or the legal proceedings involved.

Despite the ban, BLS won a fresh contract from the MEA to manage Indian Visa Application Centres in China—specifically in Beijing, Shanghai, and Guangzhou. The contract, effective October 14, is valid for three years and came into effect shortly after the debarment order was issued.

The debarment has sparked volatility in the stock market. BLS International's shares dropped by as much as 18 per cent following the announcement. Indian Missions reportedly contribute nearly 12 per cent of the company’s consolidated revenue and 8 per cent of its EBITDA, according to financial disclosures.

In the UAE, where BLS operates 12 service centres, the company assured that all centres will remain operational and that there will be no disruption in services. "Existing contracts remain unaffected, and services will continue as usual," a company spokesperson said.

The MEA's order is seen as part of its broader efforts to improve accountability and service standards among its outsourcing partners. BLS continues to operate other contracts, including a Rs. 2,055 crore deal with UIDAI to run Aadhaar Seva Kendras in India.

BLS International was one of the major visa service providers for Indian diplomatic missions globally. The ban may open opportunities for other players in the industry to step in, subject to upcoming tenders.