Recorded RBI impact
Board supersession
Board supersession · Fresh imposition
Published by RBI
27 Jan 2025
Case Brief
RBI, acting under Section 45-IE(1) of the RBI Act, 1934 and on NHB's recommendation, superseded the board of directors of Aviom India Housing Finance Private Limited. The regulator cited governance concerns and defaults in meeting various payment obligations. Shri Ram Kumar, ex-CGM of Punjab National Bank, was appointed as Administrator under Section 45-IE(2). RBI further said it would shortly begin resolution proceedings under the insolvency framework for financial service providers and move the NCLT, New Delhi, for appointment of the Administrator as the Insolvency Resolution Professional.
Why RBI Acted
Under Section 45-IE(1) of the RBI Act, 1934, and on the recommendation of the National Housing Bank, RBI superseded the board of directors of Aviom India Housing Finance Private Limited because of governance concerns and defaults in meeting various payment obligations. RBI also appointed Shri Ram Kumar, ex-CGM of Punjab National Bank, as Administrator under Section 45-IE(2), and stated it would shortly initiate resolution proceedings under the insolvency framework for financial service providers.
Operating Impact
The company's board stands replaced by the Administrator, so control shifts away from existing directors. The company is headed toward formal resolution/insolvency proceedings, which may affect management, creditors, and other counterparties.
Regulatory Basis
- Section 45-IE(1) of the Reserve Bank of India Act, 1934
- Section 45-IE(2) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- Board supersession
- Effective From
- 31 May 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC