The Reserve Bank of India (RBI), taking major action against Avom India Housing Finance Private Limited, has dissolved its board and has now applied to start the Corporate Insolvency Solution Process (CIRP). This application has been filed in the New Delhi bench of the National Company Law Tribunal (NCLT).
Reason and Administrator’s appointment
The RBI said that the board of directors of Avomom India Housing Finance was dissolved due to administrative concerns and lapse in various payment obligations. The central bank has appointed Ram Kumar, Chief General Manager of former Punjab National Bank, as Administrator of the company.
RBI said about this action that this decision has been taken on the basis of the recommendation of the National Housing Bank (NHB). The central bank has intended to introduce the loan solution process under Rules, 2019 under Rules, 2019, the central bank.
Constitution of advisory committee
The RBI has also formed a three -member advisory committee to assist the administrator. The committee consists of Paritosh Tripathi (former CGM, State Bank of India), Rajneesh Sharma (former CGM, Bank of Baroda), and Sanjay Gupta (former MD and CEO, PNB Housing Finance).
Company products
Products of Avom India Housing Finance Private Limited include Home Renovation and Improvement, Home Extension, Home Settings and Loan Against Property.
