The Protection of Interests in Aircraft Objects Act, 2025

Summary of Protection of Interests in Aircraft Objects Act, 2025
*Primary Objective: To safeguard interests in aircraft objects in alignment with international conventions, ensuring clarity in ownership, security, dispute resolution, and regulated oversight by the Central Government.
Key Provisions
1. Central Oversight & International Alignment:
• Central Government ensures implementation of the Convention on International Interests in Mobile Equipment and its Protocol concerning Aircraft Equipment in India.
• Regulatory Powers: Empowered to make rules for operational compliance, security, and dispute resolution under the Act.
2. Regulatory Framework & Central Authority:
• DGCA (Directorate General of Civil Aviation): Acts under Central Government's oversight for managing the registry and ensuring compliance.
• Rule Making Authority: Central Government authorized to make rules, including those governing operational standards, security protocols, and dispute resolutions.
3. Compliance & Central Enforcement:
• Operators & Stakeholders: Must comply with regulations set by the Central Government.
• Non-Compliance Penalties: Central Government can impose penalties, including fines, for non-compliance, especially in cases involving national security or aggression.
4. Remedies, Resolutions, & Central Jurisdiction:
• Default Remedies: Mechanisms for resolution are established under Central Government's regulations.
• Time Limits: Specified time limits for seeking remedies apply, with Central Government overseeing enforcement.
5. Jurisdiction, Enforcement, & Central Oversight:
• High Courts: Have jurisdiction over disputes, with the Central Government's regulations guiding the process.
• Override Clause: Act’s provisions, under Central Government's authority, take precedence over other laws in cases of conflict.
6. Additional Powers & Central Amendments:
• Declaration Amendments: Central Government can amend India’s declarations under the international conventions.
• Penalty Enhancements: For serious offences, including those against national security, the Central Government can enforce enhanced penalties

Legislative History:
The Protection of Interests in Aircraft Objects Act, 2025

Source: Official Record of Parliament, India Code, and Ministry of Civil Aviation

Act Title - The Protection of Interests in Aircraft Objects Act, 2025
Act Number - Act No. 17 of 2025
Act ID (India Code) - 202517
Presidential Assent date -April 16, 2025
Enforcement Date -May 01, 2025
Nodal Ministry -Ministry of Civil Aviation

Precedent & Historical Rationale
● Implementation of the Cape Town Convention & Protocol: Gives full statutory effect to the Convention on International Interests in Mobile Equipment and the Protocol on Matters Specific to Aircraft Equipment (signed at Cape Town in 2001), resolving long-standing domestic enforceability gaps due to India's dualist legal framework.
● Protection of Lessors & Reduction of Capital Costs: Overrides conflicting local insolvency and procedural laws to provide robust non-judicial remedies, streamlined IDERA (Irrevocable De-registration and Export Request Authorisation) processes, and predictable repossession timelines. This lowers jurisdiction risk for global aircraft financiers, significantly reducing leasing costs for Indian airlines.

Parliamentary Trajectory & Enactment
● Formulation: Introduced as the Protection of Interests in Aircraft Objects Bill, 2025 by the Union Minister of Civil Aviation, Shri Ram Mohan Naidu, to strengthen India's aviation leasing ecosystem and align with global aviation standards.
● Parliamentary Passage: Passed by the Rajya Sabha on April 1, 2025, and subsequently passed by the Lok Sabha on April 3, 2025.
● Presidential Assent: Received the assent of the President of India on April 16, 2025.
● Enforcement: Enforced on May 01, 2025 .