CAM GIFT City IFSC Updates

IFSCA amends provisions relating to transactions with person(s) resident in India of Framework for Aircraft Lease

IFSCA?vide circular dated February 26, 2025, amended the Framework for Aircraft Lease (“Framework”).

In order to enable purchase of assets covered by the Framework by a lessor in?IFSC?from the manufacturers of such assets in India, IFSCA has amended the provisions relating to transactions with person(s) resident in India to such extent.

Under the Framework a lessor cannot purchase, lease or otherwise acquire any asset(s) covered under the Framework, 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.

These restrictions?will not apply?where such purchase/ lease/ acquisition by the lessor:

• is from such person(s) who is not a ‘group entity’ of the lessor or;
• as a part of sale and leaseback arrangement of such assets which are being imported into India for the first time, or;
• where such asset(s) is acquired by the lessor from a manufacturer of such asset(s) in India.

The circular is available [here]

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