Corporate Insolvency Unfolds: NCLT Admits AVIOM India Case

The National Company Law Tribunal has initiated a corporate insolvency resolution process against AVIOM India Housing Finance, following governance concerns. After the RBI superseded AVIOM's board, an advisory committee was established to assist the appointed Administrator Ram Kumar. The panel will guide AVIOM operations through the insolvency process.

The National Company Law Tribunal (NCLT) has admitted the application for starting a corporate insolvency resolution process against AVIOM India Housing Finance.

The decision followed the Reserve Bank of India's move on January 27 to supersede the company's board due to governance issues and payment defaults, appointing Ram Kumar, a former CGM of Punjab National Bank, as Administrator.

This move was based on a recommendation from the National Housing Bank. Subsequently, an application was filed with the NCLT's New Delhi bench to initiate the insolvency proceedings. The RBI also formed a three-member advisory committee to support Administrator Ram Kumar.

Upon the admission of the insolvency petition against AVIOM on February 20, 2025, the RBI announced that the advisory committee will continue its role, providing guidance on AVIOM's operations during the insolvency process.

The advisory committee includes Paritosh Tripathi, former CGM of State Bank of India; Rajneesh Sharma, former CGM of Bank of Baroda; and Sanjaya Gupta, former MD & CEO of PNB Housing Finance.