RBI Files Insolvency Petition Against Aviom India Housing Finance
The development comes after the central bank recently superseded Aviom India’s board owing to governance concerns and defaults
(The Corner Office Journal) -- The Reserve Bank of India (RBI) filed an application to initiate insolvency proceedings against Aviom India Housing Finance Private Ltd.
India’s central bank filed the insolvency petition against the housing finance company today (30 January) before the New Delhi bench of the National Company Law Tribunal (NCLT), the RBI said in a statement.
The development comes after the RBI on 27 January superseded Aviom India’s board owing to governance concerns and defaults in meeting various payment obligations.
It had also appointed Ram Kumar, former chief general manager of Punjab National Bank, as administrator of the New Delhi-based company.
Advisory Committee
The RBI today constituted a three-member advisory committee to assist Kumar in discharging his duties as administrator of Aviom India, founded by Kajal Ilmi.
The members of the advisory panel are: i) Paritosh Tripathi, former chief general manager of State Bank of India, ii) Rajneesh Sharma, ex-chief general manager of Bank of Baroda, and iii) Sanjaya Gupta, former managing director and chief executive officer of PNB Housing Finance Ltd.
The RBI said the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules 2019 allows the concerned financial sector regulator to appoint a committee of advisors to advise the administrator in the operations of the financial service provider during the corporate insolvency resolution process.
Aviom India provides housing loans to individuals for home improvements, renovations and sanitation, according to its website. The company caters to low-income households in semi-urban areas.
(Send feedback to editor@cornerofficejournal.com)
