Aviom India Housing Finance’s Board Superseded by RBI; Ram Kumar Is New Administrator
Moneylife Digital Team 27 January 2025
The Reserve Bank of India (RBI) has decided to supersede the board of Aviom India Housing Finance Pvt Ltd 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). While appointing an administrator, RBI said it will soon initiate bankruptcy proceedings against the housing finance company (HFC).
 
RBI has appointed Ram Kumar, a former chief general manager (CGM) of Punjab National Bank (PNB), as the administrator of Aviom India Housing Finance under Section 45-IE(2) of the RBI Act. 
 
“His appointment is intended to ensure that Aviom India Housing Finance adheres to financial and governance standards while protecting the interests of its stakeholders,” RBI says.
 
According to the central bank, the next step in this process involves initiating a resolution plan under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019. 
 
RBI says it will soon file an application with the New Delhi bench of the National Company Law Tribunal (NCLT) to appoint Mr Kumar as the insolvency resolution professional (IRP). 
 
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.
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