RBI initiates insolvency proceedings against Aviom India Housing Finance

The Reserve Bank of India (RBI) has filed an application with a company tribunal to initiate insolvency proceedings against Aviom India Housing Finance. This decision follows the RBI's earlier move to supersede the board of Aviom due to governance concerns and payment defaults. 

While the specific governance issues have not been disclosed, the central bank has expressed its intent to address these matters through legal channels.

In conjunction with the tribunal application, the RBI has appointed Ram Kumar, the former chief general manager of Punjab National Bank, as the administrator for Aviom India Housing Finance. 

The RBI stated that it constituted a three-member advisory committee to assist the administrator to discharge his duties. The committee includes Paritosh Tripathi, ex-CGM of State Bank of India, Rajneesh Sharma, ex-CGM of Bank of Baroda, and Sanjaya Gupta, ex-MD & CEO of PNB Housing Finance.

This appointment is part of the RBI's broader strategy to ensure proper management and oversight of the housing finance company during this challenging period.
 
Aviom India Housing Finance primarily serves low-income households in semi-urban areas, offering loans for home extensions, refurbishments, and loans against property. The company's current situation has raised concerns about its ability to continue providing these essential services to its clients.