RBI retains 3-member advisory committee for AVIOM India Housing Finance insolvency process

The Reserve Bank of India (RBI) on Friday said it has retained the three-member advisory committee to assist the administrator of Aviom India Housing Finance Private Limited (AVIOM) in the discharge of his duties, following the admission of the company’s insolvency resolution process by the National Company Law Tribunal (NCLT).

The central bank had, on January 30, constituted the committee after superseding the board of AVIOM due to governance concerns and defaults in meeting various payment obligations.

The committee will continue to function under Rule 5 (c) of the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019, the RBI said in a statement.

The three-member Advisory Committee comprises of Paritosh Tripathi, former Chief General Manager, State Bank of India; Rajneesh Sharma, former Chief General Manager, Bank of Baroda; and Sanjaya Gupta, former MD & CEO, PNB Housing Finance Limited.

The New Delhi Bench of the NCLT admitted the petition for the insolvency resolution process of AVIOM on February 20. The advisory committee will continue to assist administrator Ram Kumar, former Chief General Manager of Punjab National Bank, in managing the company’s operations during the Corporate Insolvency Resolution Process (CIRP).

Last month, the RBI filed an application with the NCLT, New Delhi bench, to initiate the CIRP against AVIOM under the Insolvency and Bankruptcy Code, 2016. The move came after a recommendation from the National Housing Bank (NHB), the sectoral regulator for housing finance companies.

Under the Insolvency and Bankruptcy Rules, 2019, financial sector regulators can appoint a committee of advisors to guide the administrator in the operations of financial service providers undergoing insolvency resolution.

AVIOM, a New Delhi-based housing finance company, is undergoing insolvency proceedings following governance lapses and financial distress, prompting regulatory intervention by the RBI.