BENGALURU (Reuters) – India’s central bank on Thursday said it has filed an application with a company tribunal to initiate bankruptcy proceedings against Aviom India Housing Finance.
The move comes days after the Reserve Bank of India (RBI) superseded the board of the housing finance company due to governance concerns and payment defaults. It did not specify the nature of the governance concerns.
The RBI also appointed Ram Kumar, the former chief general manager of state-run Punjab National Bank as the administrator for Aviom.
The company caters to low-income households in semi-urban areas and provides loans for home extensions, home refurbishment and loans against property, according to its website.
(Reporting by Nishit Navin in Bengaluru; Editing by Varun H K)
