Thursday, March 17, 2022

After Tata takeover, Air India MRO stuck in stamp duty tangle

Nagpur: After Tata Group’s takeover of Air India, the erstwhile national carrier’s maintenance repair and overhaul (MRO) depot in Mihan-SEZ is caught in a corporate imbroglio.

Prior to the takeover, a number of assets like the MRO were supposed to be transferred to Air India Asset Holding Limited (AIAHL), a special purpose vehicle. The transfer of assets of the MRO in Mihan are attracting a stamp duty of Rs32 crore, which has held up the matter.

Sources says even now, on paper, the MRO remains a part of Air India, which is a non-existent entity after takeover by Tatas. The matter has been taken up with the state government by the Union civil aviation secretary, said a source.

The MRO was run by Air India Engineering Services Limited (AISEL). After the takeover, all such assets categorized as non-core, including the MRO, will go to AIAHL. As this leads to transfer of land and building, this is attracting a stamp duty.

Moreover, the MRO is located on land leased out by Maharashtra Airport Development Company (MADC). So the change of hand will also need fresh registration by AIAHL with MADC. This again attracts stamp duty payable to the state government, said a source.

17/03/22 Shishir Arya/Times of India

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