Rajya Sabha passes The Protection of Interests in Aircraft Objects Bill

Rajya Sabha passes 'The Protection of Interests in Aircraft Objects Bill, 2025' to enhance aviation industry security and clarity.

Rajya Sabha on Tuesday (April 1, 2025) passed ‘The Protection of Interests in Aircraft Objects Bill, 2025’ that seeks to give legal effect to certain international agreements in their application to India.

Parliament Budget Session (Day 14) on April 1, 2025 highlights

Replying to the discussion on the Bill, Minister of Civil Aviation Kinjarapu Rammohan Naidu said the legislation will create a lot of security for both the lessors and the lessees and the overall aviation market also because there has been a lot of confusion in this area. It has been a grey area for sometime.

“With the bringing of this Bill, definitely it is going to create a lot more clarity. We hope this is going to give a lot of push for the leasing industry, which is the need of the hour. There is an immediate need for this Bill to be there in the industry,” he said.

The Bill seeks to give legal effect to certain international agreements in their application to India, which includes Convention on International Interests in Mobile Equipment (also known as Capetown Convention of 2001) and Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Aircraft Equipment. India had acceded to these in 2008.

The Bill states that before exercising any remedy, the creditor must notify the Directorate General of Civil Aviation (DGCA) about the occurrence of a default.

In cases of a default, it gives creditors certain remedies, including the right to take back possession of the asset within two months or a mutually agreed upon period, whichever is earlier.