Mumbai: The Reserve Bank of India (RBI) on Monday superseded the board of Aviom India Housing Finance Pvt Ltd due to the company’s inability to meet payment obligations and concerns about governance practices. The RBI appointed Ram Kumar, ex-CGM of Punjab National Bank, as the Administrator of the New Delhi-based company and said that it would soon be initiating bankruptcy proceedings against the housing finance company (HFC).
RBI’s decision follows a recommendation from the National Housing Bank (NHB). “His (the administrator’s) appointment is intended to ensure that Aviom India Housing Finance adheres to financial and governance standards while protecting the interests of its stakeholders,” RBI said. It also added that it would soon file an application with the New Delhi bench of the National Company Law Tribunal (NCLT) to appoint Kumar as the insolvency resolution professional (IRP).
Aviom India Housing Finance caters to low-income households in semi-urban areas and provides loans to women borrowers who do not have any formal income documentation.
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.
Aviom India Housing Finance caters to low-income households in semi-urban areas and provides loans to women borrowers who do not have any formal income documentation.
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.
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