NCLT Admits RBI’s Insolvency Plea Against Aviom India Housing Finance
The National Company Law Tribunal (NCLT), New Delhi Bench, has admitted the corporate insolvency resolution process (CIRP) plea filed by the Reserve Bank of India (RBI) against Aviom India Housing Finance Private Limited. The decision, delivered on February 20, 2025, marks a significant move under Section 227 of the Insolvency and Bankruptcy Code (IBC), 2016, governing the insolvency resolution of financial service providers.
RBI Moves Against Aviom
The RBI, acting as the appropriate regulator, had filed the insolvency application citing governance concerns and defaults in payment obligations by Aviom India Housing Finance. The financial service provider, classified as a non-banking financial company (NBFC) with assets exceeding ₹500 crore, had reportedly defaulted on multiple loan repayments.
The central bank had previously superseded the company’s board on January 27, 2025, under Section 45-IE of the RBI Act, 1934, and appointed Ram Kumar, former Chief General Manager of Punjab National Bank, as the Administrator to oversee its operations.
Defaults and Creditor Claims
According to the RBI’s petition, Utkarsh Small Finance Bank, LIC Housing Finance Ltd, Suryodaya Small Finance Bank, and Poonawalla Fincorp Limited reported substantial defaults by Aviom India Housing Finance. Notably, Utkarsh Small Finance Bank alone had extended loans totaling Rs 46 crore, with outstanding dues of approximately Rs 24.5 crore as of January 27, 2025. A recall notice was issued by the bank on December 3, 2024, demanding repayment of Rs 27.07 crore.
The Central Repository of Information on Large Credits (CRILC) report as of December 31, 2024, confirmed Aviom’s loan accounts were classified as “in default”.
NCLT’s Decision
The NCLT, comprising Judicial Member Mahendra Khandelwal and Technical Member Dr. Sanjeev Ranjan, found sufficient grounds to admit the CIRP petition. The tribunal observed that:
- The default amount exceeded the minimum threshold of ₹1 crore under Section 4 of the IBC.
- The RBI, as the appropriate regulator, had followed due process in filing the petition.
- The financial service provider was under regulatory scrutiny for governance lapses.
Consequently, the NCLT ordered the initiation of corporate insolvency resolution proceedings (CIRP) against Aviom India Housing Finance and declared a moratorium on all recovery actions as per Section 14 of the IBC.
Administrator to Oversee Resolution
The tribunal formally appointed Ram Kumar as the Administrator, who will now take charge of the company’s management during the resolution process. As per the ruling, all officers and managers of Aviom must provide the Administrator with necessary documents and information within a week, failing which coercive action may follow.
Additionally, the tribunal directed the Administrator to issue a public announcement regarding the insolvency proceedings and update the Registrar of Companies (ROC) accordingly. The next hearing for the case is scheduled for April 21, 2025, for the submission of the progress report.
With this development, Aviom India Housing Finance becomes one of the latest financial service providers to face insolvency proceedings under the RBI’s regulatory framework.
Also See: RBI suspends board of Aviom India Housing Finance; to start insolvency proceedings
