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Corporate Laws Central Ministry of Finance International Financial Services Centres Authority Act, 2019

Amendment to the Framework for Aircraft Lease with regard to transactions with person(s) resident in India

26-Feb-2025 | F. No. 172/IFSCA/Finance Company Regulations/2024-25/02

IFSCA has issued a circular regarding an Amendment to the Framework for Aircraft Lease with regard to transactions with person (s) resident in India effective from 26th February, 2025. By virtue of the circular, Clause O.2 of the circular on Framework for Aircraft Lease has been substituted, the substituted clause deals with the acquisition of assets by a lessor whereas the earlier clause dealt with the disposal of assets by a person resident in India. Accordingly, substituted clause O.2 is as follows - (a)"No Lessor shall purchase, lease or otherwise acquire ("acquiring") any asset(s) covered under this framework ("assets"), where post-acquisition, the asset will be operated or used solely by person(s) resident in India or to provide services to person(s) resident in India; (b) The restrictions in clause (a) above shall not apply where: (i) acquiring by the Lessor is from such person(s) who is not a "Group Entity" of the Lessor or; (ii) acquiring by a Lessor is as a part of a sale and leaseback arrangement of such assets which are being imported into India for the first time, or; (iii) such asset(s) is acquired by the Lessor from a manufacturer of such asset(s) in India Additionally, the revised framework for the same is also provided by IFSCA. Kindly refer to the document for further details.

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