RBI supersedes Aviom India Housing Finance's board, appoints administrator

The Reserve Bank of India (RBI) on Monday superseded the board of Aviom India Housing Finance, citing governance concerns and defaults in meeting payment obligations, and appointed Ram Kumar, former Chief General Manager (CGM) of Punjab National Bank, as the administrator.

 

The regulator said it "intends to shortly" initiate the process of resolution of the company under the Insolvency and Bankruptcy Code (IBC) and would also apply to the National Company Law Tribunal (NCLT), New Delhi, for appointing the administrator as the Insolvency Resolution Professional.

 

Aviom is primarily engaged in financing affordable housing loans. As on March 31, 2024, on a fully diluted basis, the promoter Kajal Ilmi and her family members held a 31.4 per cent stake in the company, with other key stakeholders being Nuveen (35.06 per cent), Gojo and Company Inc (19.84 per cent), SABRE Partners AIF Trust (9.88 per cent), and Capital 4Development Asia Fund Cooperative UA (3.78 per cent), according to India Ratings.

 

The statutory auditors of the company noted discrepancies in its books of accounts amid complaints about irregularities, which are being investigated. A fraud within the company has also been reported to the National Housing Bank (NHB). Additionally, the company had filed a complaint with the Economic Offences Wing (EOW).

 

The company has been facing liquidity issues and delayed interest payments. It is undergoing an audit by a third-party forensic auditor appointed by NHB.

 

The net profit of Aviom India Housing Finance declined 14.09 per cent to Rs 6.34 crore in the quarter ended March 2024, compared to Rs 7.38 crore during the previous quarter ended March 2023. Sales rose 58.94 per cent year-on-year (Y-o-Y) to Rs 117.38 crore in the quarter ended March 2024, compared to Rs 73.85 crore during the previous quarter ended March 2023.

 

The gross non-performing assets (GNPA) and net non-performing assets (NNPA) ratios stood at 0.97 per cent and 0.54 per cent, respectively, as on March 31, 2024.