RBI supersedes board of Aviom India Housing Finance due to governance concerns

RBI supersedes board of Aviom India Housing Finance due to governance concerns

Reserve Bank of India on January 27 said it has superseded the board of directors of Aviom India Housing

Finance Private Limited "owing to governance concerns and defaults in meeting various payment obligations".

Ram Kumar, ex-CGM of Punjab National Bank, has been appointed as the administrator.

RBI said it intends to initiate process of resolution under Insolvency and Bankruptcy Code.

"In exercise of the powers conferred under Section 45-IE(1) of the Reserve Bank of India Act, 1934, and as per recommendation of National Housing Bank (NHB), the Reserve Bank has today superseded the board of directors of Aviom India Housing Finance Private Limited owing to governance concerns and defaults in meeting various payment obligations, and appointed Ram Kumar, ex-CGM of Punjab National Bank, as the Administrator under Section 45-IE(2) of the Reserve Bank of India Act, 1934.

"The Reserve Bank intends to shor tly initiate the process of resolution of the company under the Insolvency and Bankruptcy Rules, 2019, and would also apply to the NCLT, New Delhi, for appointing the Administrator as the Insolvency Resolution Professional," said RBI in a circular.

Last year, the mortgage lender had informed its creditors about an ongoing audit by the National Housing Bank (NHB) following the discovery of fraudulent transactions during a recent onsite supervisory inspection. The company warned that this could delay repayments to creditors.

The housing finance company, founded by Kajal Ilmi and backed by impact investors Nuveen and Gojo and Co, had built a loan book of Rs 1,752 crore by the end of March 2024.