The government is in the final stages of providing legal support for an international convention aimed at protecting the rights of foreign lessors regarding their leased aircraft and assets in the Indian aviation sector.

During his inaugural address at the 'CAPA India Aviation Summit 2024', Ministry of Civil Aviation Secretary Vumlunmang Vualnam outlined that the ministry is prepared for the enactment of the act which will facilitate the implementation of the Cape Town Convention, of which India is a signatory.

Vualnam mentioned that the ratification of the Cape Town Convention through the enactment of a law is nearing completion. He expressed confidence that the incoming government would prioritize this matter, stating, "A new government is coming in, and I am sure it will be taken up as one of the top priorities. It is something on which we are fully ready."

While India has signed the convention, its Parliament has yet to ratify it. As part of this process, the Ministry of Civil Aviation drafted the Protection and Enforcement of Interests in Aircraft Objects Bill, 2022, which was previously subject to public consultation.

The bill aims to align India's legal framework with the Cape Town Convention, which requires signatory countries to establish laws enabling aircraft lessors to reclaim their assets if lease conditions are not met by the airline.

Last year, foreign aircraft lessors of Go First faced uncertainty when the National Company Law Tribunal prohibited them from reclaiming their aircraft during the airline's insolvency proceedings. However, the Delhi High Court recently granted permission for the lessors to take possession of the aircraft, though concerns persist regarding the regulatory and legal framework surrounding aircraft repossession.