BLS International Services Ltd, the agency hired by India to carry out initial scrutiny of visa applications of Canadians, on Thursday said Indian visa services were suspended due to “operational reasons”.

The development comes after India suspended visa services for Canadian nationals till further notice amid a diplomatic row between the two nations after the Canadian government made allegations that Indian government agents are linked in killing of Khalistani leader Hardeep Singh Nijjar in Canada in June.

“Due to operational reasons, with immediate effect i.e. 21 September 2023, Indian visa services in Canada have been suspended till further notice. The impact of this move is negligible on our financials as the Canadian visa issuance business contributes less than 2% to BLS International’s total annual revenue,” said the firm in a stock exchange filing.

The company also said that the impact of this move is negligible on its financials as “the Canadian visa issuance business contributes less than two per cent to BLS International’s total annual revenue”.

Shares of BLS International lost 2.15% to close at ₹263.65 on the BSE on Thursday. During the day, it fell 3.41 per cent to ₹260.25..

On the NSE, the stock fell 2.42% at ₹263.40.

BLS International’s market valuation fell by ₹213.99 crore to ₹10,855.55 crore.

Hardeep Singh Nijjar, a Canadian citizen, was also the president of Surrey’s Guru Nanak Sikh Gurdwara.

India has rejected Canada’s allegations, and its external affairs ministry has dubbed the statements as “absurd”.

“The security situation because of Canadian government’s inaction has resulted in disruptions and we have suspended visa applications,” Arindam Bagchi, told reporters in New Delhi.

All categories of visas, including e-visas are suspended, Bagchi added.

Meanwhile, the High Commission of Canada in India said on Thursday that it is assessing its staff complement in India.

“In light of the current environment where tensions have heightened, we are taking action to ensure the safety of our diplomats,” the Canadian high commission said in a statement.

“With some diplomats having received threats on various social media platforms, Global Affairs Canada is assessing its staff complement in India,” it said.