The Reserve Bank of India has approved Areion Group's ₹936 crore takeover of the insolvent Aviom India Housing Finance. This regulatory nod includes 'fit-and-proper' status for promoter Manish Lalwani, clearing the path for the deal to move to the NCLT for final approval. The acquisition is expected to provide lenders with roughly 65% recovery on their dues.
Detailed Coverage
The Reserve Bank of India has officially approved the acquisition of Aviom India Housing Finance by Areion Group for ₹936 crore. This regulatory clearance is a key milestone for the mortgage lender, which has been undergoing a formal insolvency resolution process after entering the National Company Law Tribunal proceedings in February 2025.
Regulatory Approvals and Next Steps
Beyond the primary acquisition nod, the regulator granted the mandatory 'fit-and-proper' clearance to Areion Group promoter Manish Lalwani. This is a critical regulatory check that verifies the background and financial integrity of new owners taking over a licensed financial institution. With the RBI's approval secured, the resolution process will now proceed to the National Company Law Tribunal for the final legal consent required to conclude the transfer of ownership.
Resolution Plan and Lender Decision
Areion Group’s proposal was selected by lenders due to its unconditional nature, despite a higher offer of ₹977.5 crore from Unity Small Finance Bank during the challenge auction process. Creditors prioritized the certainty of Areion's bid, which is projected to result in a 65% recovery of outstanding dues. This preference for certainty over a higher nominal bid highlights the lenders' focus on ensuring the transaction is completed without additional conditional hurdles.
Financial Irregularities at Aviom
Aviom India Housing Finance faced severe distress following the discovery of significant accounting discrepancies. Audits revealed that the company had overstated its cash balances by inflating mutual fund investment figures. These findings, which surfaced in late 2025, triggered an investigation by the National Housing Bank and led to intense regulatory scrutiny. These events eventually forced the company into the insolvency process, as the inflated financial records raised deep concerns about the company's actual liquidity and business health.
For investors and stakeholders, the next important update will be the formal order from the National Company Law Tribunal. Tracking the final NCLT approval will be essential, as it will mark the official exit of the company from the insolvency process and the transition to new management under the Areion Group.