Aviom India Housing Finance: RBI Files Bankruptcy Application, Appoints 3-Member Advisory Committee
Moneylife Digital Team 06 February 2025
After superseding the board of directors of Aviom India Housing Finance Pvt Ltd and appointing Ram Kumar, former chief general manager (CGM) of Punjab National Bank, as the administrator, the Reserve Bank of India (RBI) filed an application before the New Delhi bench of the national company law tribunal (NCLT) to initiate the corporate insolvency resolution process (CIRP) against the lender.
 
Separately, RBI appointed a three-member advisory committee to assist the administrator. The committee members are Paritosh Tripathi, former CGM of State Bank of India (SBI), Rajneesh Sharma, former CGM of Bank of Baroda and Sanjaya Gupta, former managing director and chief executive officer (MD&CEO) of PNB Housing Finance Ltd.
 
For the CIRP of Aviom India Housing Finance, RBI filed the application under Section 227, read with clause (zk) of sub-section (2) of Section 239 of the insolvency and bankruptcy code (IBC), 2016, read with rules 5 and 6 of the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudication Authority) Rules.
 
Last month, RBI superseded the board of Aviom India Housing Finance due to the company’s inability to meet payment obligations and concerns about governance practices. RBI’s decision follows a recommendation from the National Housing Bank (NHB).
 
As reported by Moneylife in November 2024, Aviom India Housing Finance informed its creditors that a forensic audit conducted by the NHB had uncovered fraudulent transactions during an inspection. These findings could result in financial restatements, impacting the company’s ability to raise capital and creating significant liquidity challenges.
 
Following these revelations, Aviom India Housing Finance filed a criminal complaint with the economic offences wing (EOW). The HFC also disclosed that its former auditors had advised against relying on its financial statements for the past three years, further deepening concerns about its financial health.
Comments
Free Helpline
Legal Credit
Feedback