New Delhi, Oct. 22 -- Global aircraft lessors have voiced strong opposition to India's proposed aviation regulations, arguing that the new rules could make it harder for them to reclaim leased aircraft from financially distressed airlines.

According to the draft released by the Ministry of Civil Aviation, lessors may be required to settle certain outstanding dues-such as taxes, airport fees, and employee payments-before taking back their planes.

Industry groups, including the Aviation Working Group (AWG), say this clause places an unfair financial burden on lessors and could discourage future leasing activity in India.

Currently, about 80% of commercial aircraft operated by Indian airlines are leased, far above the global average of 58...