Mahindra's Canadian Affiliate Closes Its Operations
Amidst a growing diplomatic controversy between Canada and India, Resson Aerospace Corporation, a Canada-based associate firm of the Indian automotive giant Mahindra & Mahindra, has officially ceased operations, as announced in a regulatory filing. The timing of this move has stirred speculation on social media, yet the exact reasons behind it remain unclear. Mahindra & Mahindra has not issued any official statement regarding this development.
Mahindra & Mahindra, headquartered in Mumbai, held an 11.18 percent stake in Resson Aerospace Corporation, which had voluntarily initiated its winding-up process.
In its regulatory filing, Mahindra & Mahindra disclosed, “Resson has received a Certificate of Dissolution from Corporations Canada dated September 20, 2023, which was informed to the company.”
Consequently, Resson Aerospace Corporation has not only ceased to exist but has also ended its association with Mahindra & Mahindra effective from September 20, 2023.
Mahindra & Mahindra further revealed, “Upon liquidation of Resson, the company is entitled to receive approximately 4.7 million Canadian Dollars (equivalent to ₹ 28.7 crore) as distribution of proceeds towards Class C Preferred Shares held by the company.”
In response to this development, shares of Mahindra & Mahindra experienced a 1.93 percent decline, trading at ₹1,602.55 apiece on the BSE.
Meanwhile, the diplomatic tensions between Canada and India have escalated. Canadian Prime Minister Justin Trudeau has reiterated allegations that “Indian government agents” were involved in the June killing of Hardeep Singh Nijjar, a Canadian citizen wanted by India for alleged terrorist activities. Trudeau stated that there are “credible reasons to believe” this to be the case, although no evidence has been provided to support these claims.
India has vehemently rejected these allegations and has instead raised concerns about “politically condoned hate crimes and criminal violence” occurring in Canada. The Indian government also noted that Canada has not shared any information regarding Nijjar’s killing.
In response to the situation, the Indian government has suspended visa services in Canada, citing “security threats” that have hindered their officials from carrying out visa-related functions. This move further underscores the growing strain in bilateral relations between the two nations.
