NCLT Admits Aviom India Housing Finance Into Insolvency Initiated By RBI
The Reserve Bank of India had earlier planned to initiate insolvency proceedings against Aviom India Housing Finance.
The National Company Law Tribunal on Thursday admitted Aviom India Housing Finance into insolvency, according to lawyers familiar with the matter.
Earlier this year, the Reserve Bank of India said in a press release that it was planning to initiate insolvency proceedings against Aviom India Housing Finance Pvt Ltd.
RBI’s statement came after it superseded the board of directors of Aviom Housing Finance due to governance concerns and defaults in meeting various payment obligations. The RBI has appointed an administrator and an advisory committee to oversee the resolution of Aviom India Housing.
Aviom Housing Finance has bank debt of around Rs 1,400 crore and non-convertible debenture (NCD) borrowings worth Rs 400 crore, people familiar with the matter had told NDTV Profit, adding that the company has a loan book of around Rs 1,800 crore, which includes loans to fictitious accounts.
According to details available in the company's annual report for the financial year ending March 2024, HDFC Bank, with a Rs 71 crore outstanding, is its largest lender, while Kotak Mahindra Bank and Northern Arc Capital have also extended Rs 50 crore worth of term loans each to the company. Other major lenders include Poonawalla Fincorp and LIC Housing Finance with a Rs 40 crore exposure each.
For the quarter ended June 2024, the company's net profit stood at Rs 2.97 crore, less than half of what it was a quarter ago.
