The Reserve Bank of India (RBI) has announced the supersession of the Board of Directors of Aviom India Housing Finance Private Limited due to governance concerns and defaults in meeting payment obligations. The decision was taken under Section 45-IE(1) of the Reserve Bank of India Act, 1934, following a recommendation from the National Housing Bank (NHB).
The central bank has appointed Shri Ram Kumar, former Chief General Manager of Punjab National Bank, as the Administrator for the company under Section 45-IE(2) of the RBI Act. This move comes as part of RBI’s efforts to address financial and governance issues in the company and safeguard the interests of its stakeholders.
In its statement, the RBI revealed that it plans to initiate the resolution process for Aviom India Housing Finance under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019. The central bank will also approach the National Company Law Tribunal (NCLT) in New Delhi to appoint the Administrator as the Insolvency Resolution Professional for the company.
The supersession highlights the RBI’s ongoing vigilance in monitoring and addressing governance and financial stability concerns in the financial services sector. The resolution process aims to ensure a structured approach to resolving the company’s financial issues in line with regulatory norms.
Stakeholders and market participants will closely monitor further developments, especially as the insolvency resolution process unfolds.