Regulatory Challenges and Security Implications of Bareboat Charter-Cum-Demise Arrangements under the Merchant Shipping Act, 2025 in India

Merchant Shipping Act, 2025 will result in significant changes in maritime regulatory framework of India such as formalization of bareboat charter cum-demise arrangement. This research paper discusses the legally and security issues of this provision, whose areas lacked research, and that ownership issues, patterns of leasing, and their national security implications are untested. The bareboat charter-cum-demise contracts have the disadvantage of delegating the operational control of the vessels but not ownership and as a result, there could be regulatory and enforcement challenges. The paper begins by defining this arrangement in the Indian legal system and the international legal system, development of this arrangement and its position in the new statutory regime. It also reviews key provisions of the Merchant Shipping Act, 2025 as a means of regulating the eligibility of ownership, registration procedures, and the electronic management of vessels and describes new provisions to bring more involvement of the Indian citizens, firms, and non-residents Indians. Also, the paper examines government protection under the Act such as due diligence and statutory position of authority and assesses them as adequate in addressing emerging risks. It concludes with policy recommendations to assist legal reform, technical innovations in vetting and monitoring and congruent enforcement practice to facilitate the strengthening of national security, and also permit lawful maritime trade. This study provides a timely legal insight to inform the policymakers and other marine regulators, security agencies in the context of providing a sound, transparent and safe regulatory framework on bareboat charter management in India amidst dynamic maritime environment.