diff --git a/drivers/net/ethernet/mellanox/mlxsw/spectrum_router.c b/drivers/net/ethernet/mellanox/mlxsw/spectrum_router.c
index a330b369e8995e5640dd2bd2b0bc35542941c493..39d600c8b92d8e4d15514f2b0a65f75bb62bf6fc 100644
--- a/drivers/net/ethernet/mellanox/mlxsw/spectrum_router.c
+++ b/drivers/net/ethernet/mellanox/mlxsw/spectrum_router.c
@@ -994,7 +994,7 @@ u32 mlxsw_sp_ipip_dev_ul_tb_id(const struct net_device *ol_dev)
 	if (d)
 		return l3mdev_fib_table(d) ? : RT_TABLE_MAIN;
 	else
-		return l3mdev_fib_table(ol_dev) ? : RT_TABLE_MAIN;
+		return RT_TABLE_MAIN;
 }
 
 static struct mlxsw_sp_rif *
@@ -1598,27 +1598,10 @@ static int mlxsw_sp_netdevice_ipip_ol_vrf_event(struct mlxsw_sp *mlxsw_sp,
 {
 	struct mlxsw_sp_ipip_entry *ipip_entry =
 		mlxsw_sp_ipip_entry_find_by_ol_dev(mlxsw_sp, ol_dev);
-	enum mlxsw_sp_l3proto ul_proto;
-	union mlxsw_sp_l3addr saddr;
-	u32 ul_tb_id;
 
 	if (!ipip_entry)
 		return 0;
 
-	/* For flat configuration cases, moving overlay to a different VRF might
-	 * cause local address conflict, and the conflicting tunnels need to be
-	 * demoted.
-	 */
-	ul_tb_id = mlxsw_sp_ipip_dev_ul_tb_id(ol_dev);
-	ul_proto = mlxsw_sp->router->ipip_ops_arr[ipip_entry->ipipt]->ul_proto;
-	saddr = mlxsw_sp_ipip_netdev_saddr(ul_proto, ol_dev);
-	if (mlxsw_sp_ipip_demote_tunnel_by_saddr(mlxsw_sp, ul_proto,
-						 saddr, ul_tb_id,
-						 ipip_entry)) {
-		mlxsw_sp_ipip_entry_demote_tunnel(mlxsw_sp, ipip_entry);
-		return 0;
-	}
-
 	return __mlxsw_sp_ipip_entry_update_tunnel(mlxsw_sp, ipip_entry,
 						   true, false, false, extack);
 }