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RBI Scrutiny Mounts Over ₹936 Crore Housing Finance Deal
17 Jun
Summary
- Areion Group seeks RBI approval for ₹936 crore Aviom acquisition.
- RBI will scrutinize fund sources and Areion Group governance.
- The deal involves a fraud-hit mortgage lender, Aviom India Housing Finance.
The Reserve Bank of India (RBI) is currently reviewing Areion Group's proposed ₹936-crore acquisition of Aviom India Housing Finance. This significant transaction requires explicit approval from the central bank.
Sources indicate that the RBI's evaluation will extend beyond typical commercial considerations. A 'fit-and-proper' assessment will meticulously examine Areion Group's governance track record, ownership structure, and, critically, the origin of the funds intended for the acquisition.
The primary focus for the regulator is to ensure that the substantial capital backing the deal is clean and unequivocally identifiable. This stringent review process is underway as Areion Group seeks the necessary endorsement for the takeover of the mortgage lender, which has previously faced issues related to fraud.
