The Delhi insolvency court on Thursday admitted Aviom India Housing Finance Pvt. Ltd into bankruptcy and liquidation proceedings following a plea by the Reserve Bank of India (RBI).
RBI had moved the National Company Law Tribunal (NCLT) under the Financial Service Providers (FSP) Insolvency Rules, 2019, leading to an interim moratorium that restricts legal proceedings, asset transfers, and recovery actions against the company. However, the supply of essential goods and services will not be disrupted during this period.
Under the 2019 guidelines, only a regulator can refer a financial services provider to the bankruptcy tribunal. Instead of a traditional…
