RBI files application for insolvency proceedings against Aviom India Housing Finance

The Reserve Bank on Thursday said it has filed an application with the National Company Law Tribunal, New Delhi bench, for initiation of corporate insolvency resolution process against Aviom India Housing Finance Private Limited.

On Monday, the RBI superseded the board of Aviom India Housing Finance owing to governance concerns and defaults in meeting various payment obligations.

The Reserve Bank has appointed Ram Kumar, ex-CGM of Punjab National Bank, as the Administrator of the New Delhi-based company.

In a statement on Thursday, the central bank said an application for initiation of Corporate Insolvency Resolution Process (CIRP) against Aviom India Housing Finance Private Limited filed under the Insolvency and Bankruptcy Code, 2016.

While superseeding board of New Delhi-based Aviom, the RBI said the action was taken basis recommendation of the National Housing Bank (NHB).

In a separate statement, the RBI said it has constituted a three-member advisory Committee to assist the Administrator in discharge of his duties.

The members of the Advisory Committee are Paritosh Tripathi (ex-CGM, State Bank of India), Rajneesh Sharma (ex-CGM, Bank of Baroda), and Sanjaya Gupta (ex-MD & CEO, PNB Housing Finance).

The Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 provides for the concerned financial sector regulator appointing a Committee of Advisors to advise the Administrator in the operations of the financial service provider during the corporate insolvency resolution process.