Thousands of Australian and Indian residents seeking Indian passports, visas and Overseas Citizen of India (OCI) services have been caught in a legal dispute involving MEA (Ministry of External Affairs) visa and consulate services provided by VFS Global, despite having no role in the proceedings.
VFS Global is a private outsourcing company that manages the administrative processing of visa, passport and consular applications for governments and embassies.
A legal challenge filed in Delhi by an unsuccessful bidder in a UAE consular outsourcing tender has disrupted four other international service contracts awarded by the Indian Ministry of External Affairs (MEA). Although the contracts were awarded separately, the providers have become entangled in the same litigation. The dispute has brought VFS Global’s consular services in Australia to a standstill, affecting Australia’s rapidly growing Indian community, including international students, as well as Australians travelling to India. Following extensive hearings in the Delhi High Court on Thursday, 2 July, a decision is expected on Monday, 6 July.
How the UAE dispute began
Recent tenders for outsourced Consular services have been conducted in the United Arab Emirates, Singapore, Kuwait and Australia, with many of the same multinational service providers competing independently in each jurisdiction.
The wider legal battle first came into public focus in the UAE, where a case now before the Delhi High Court disrupted the planned transition to a new outsourced service provider, Allhind Tours and Travel LLC. MEA
Competing bidders had questioned aspects of the tender’s technical evaluation process.
According to court filings, petitioners E Trav Tech and Versys sought more disclosure about how technical scores were allocated and why they were disqualified.
Although the Supreme Court affirmed the government’s broad discretion in evaluating bids, the matter later reached the Delhi High Court, which ordered the parties to maintain the status quo pending further hearings.
That order temporarily prevented the UAE service handover and forced Indian diplomatic missions to provide limited walk-in passport and consular services directly while proceedings continued.
Sources stressed that though Australia’s procurement process is separate from the UAE tender, the developments in one jurisdiction are often cited by unsuccessful bidders challenging outcomes elsewhere.
In Australia, six bidders competed — BLS E-Services, IVS Global, DU Digital, VFS Global, VERASYS and E-TRAV Tech — with VFS Global emerging as the successful bidder. E-TRAV Tech, one of the unsuccessful bidders, is the petitioner in this case being argued in Delhi High Court. MEA
Impact on VFS Global Australia
Sources familiar with the matter told Indian Link that VFS Global has delivered Indian visa and consular services in Australia for almost 20 years. The company was awarded the new contract to outsource consular, passport and visa (CPV) services in Australia on 23 April 2026.
VFS Global had been preparing to open six new Indian Consular Application Centres (ICACs) on 1 July. However, the rollout remains on hold after legal proceedings challenging the Indian government’s procurement process led to an interim stay.
Centres ready, but unable to operate: “The centres are ready, staff have been recruited and trained, systems are in place, and appointments can open as soon as the legal process concludes,” a source said.
We have a key update regarding Indian Consular, Passport and Visa (CPV) services in Australia.
For more details, please visit https://t.co/UUhveckOCk pic.twitter.com/llkyNP1KLh
— VFS Global (@VFSGlobal) July 1, 2026
For now, the company is unable to operate because of litigation initiated by a competing bidder that did not secure the contract.
The Australian contract is expected to cover more than 220,000 passport, visa, OCI and other consular applications each year. Demand has continued to rise as Australia’s Indian diaspora approaches one million people.
Applicants left waiting: Industry observers say procurement disputes are an accepted feature of major government contracting. However, prolonged litigation can leave the intended beneficiaries — the public — bearing the greatest cost.
While competing companies continue their legal arguments, applicants remain stuck waiting for passports, visas, OCI documents and other essential consular services.
A VFS source has told Indian Link that during the suspension, VFS Global has continued supporting applicants through its customer service channels. Documents processed before the pause remain available for collection. Applicants whose passports are currently with the company may also request their return, where applicable, in line with guidance from the High Commission of India and the Consulates General.
Waiting for the court’s decision: With closing arguments concluded, a judgment is expected shortly. If the court lifts the interim restrictions, sources say VFS Global is ready to activate all six Australian centres almost immediately.
For thousands of applicants, the decision cannot come soon enough. Each additional day adds to the backlog and delays the rollout of expanded consular services designed to meet the needs of one of Australia’s fastest-growing communities.
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