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Mahindra’s Affiliate Resson Aerospace Corporation Dissolves Amid Diplomatic Strife between India and Canada

Indian Automotive Giant's Associate Firm in Canada Ceases Operations; Speculations Surround the Timing

India CSR by India CSR
in News
Reading Time: 3 mins read
Anand Mahindra
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The abrupt dissolution of Mahindra’s associate, Resson Aerospace Corporation, amid escalating diplomatic tensions between India and Canada, has left the industry and international onlookers curious and speculative.

In the midst of a surging diplomatic controversy between India and Canada, Resson Aerospace Corporation, the Canada-based associate company of the colossal Indian automotive manufacturer, Mahindra & Mahindra, has announced its dissolution. The unanticipated move has fueled conjectures on social media platforms; however, no clear rationale behind the decision has surfaced yet. Mahindra & Mahindra has maintained silence and has not released any statements pertaining to the matter.

Dissolution Details

Certificate of Dissolution

Resson Aerospace Corporation officially ceased to exist post-reception of a Certificate of Dissolution from Corporations Canada on September 20, 2023, as stated in Mahindra & Mahindra’s regulatory filing. Following this, Resson is no longer an associate of Mahindra & Mahindra.

Financial Implications

Upon the liquidation of Resson, Mahindra & Mahindra is slated to receive around 4.7 million Canadian Dollars (equivalent to ₹ 28.7 crore) as the distribution of proceeds relating to the Class C Preferred Shares held by the company. However, shares of M&M were observed trading 1.93 per cent down at ₹ 1,602.55 each on the BSE.

Diplomatic Tensions

Amid this corporate development, ongoing frictions between India and Canada have intensified. Canadian Prime Minister Justin Trudeau has reiterated accusations implicating “Indian government agents” in the June demise of Hardeep Singh Nijjar, a Canadian citizen and a recognized terrorist in India. Trudeau claims to have “credible reasons” to substantiate his allegations, although no evidence has been presented.

Indian Response

The Indian government has vehemently refuted Trudeau’s accusations, highlighting instances of “politically condoned hate crimes and criminal violence” within Canada. Expressing discontent, India reports that Canada has failed to share any substantive information about Nijjar’s demise. Due to cited “security threats,” India has also suspended visa services in Canada, asserting these threats hinder officials from performing visa functions efficiently.

The undisclosed reasons and the conspicuous silence from Mahindra & Mahindra raise questions about the true motivations and implications behind this dissolution. While the direct consequences on the automotive giant are apparent, the broader repercussions on India-Canada relations and international diplomacy remain to be seen.

Copyright@IndiaCSR

Also Read: India-Canada Tensions: Anand Mahindra’s Bold Move Triggers Rs 7200 Cr Financial Upset


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