The Reserve Bank of India (RBI) has approved the Areion Group’s ₹936-crore acquisition of troubled mortgage lender Aviom India Housing Finance. The banking regulator has also granted “fit-and-proper” approval to Areion promoter Manish Lalwani, clearing the primary regulatory hurdle required for a change in control of a regulated financial institution.
With the RBI’s green light secured, the insolvency resolution process moves to the National Company Law Tribunal (NCLT) for final approval.
Deal Overview & Financial Recovery
| Metric / Parameter | Details |
| Target Entity | Aviom India Housing Finance (Affordable Housing Financier) |
| Acquiring Entity | Areion Group |
| Approved Resolution Value | ₹936 Crore (Unconditional Offer) |
| Estimated Lender Recovery | ~65% for secured financial creditors |
| Key Leadership Appointment | Suresh Khatanhar (former Deputy MD, IDBI Bank) named Group CEO of Areion |
Why Lenders Picked Areion Over Higher Bids
During the Swiss challenge auction process, Unity Small Finance Bank submitted a higher bid of ₹977.5 crore. However, creditors unanimously voted in favor of Areion’s ₹936-crore plan because:
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Unconditional Commitment: Areion’s proposal was unconditional, whereas Unity SFB’s offer carried specific execution contingencies.
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Execution Certainty: Lenders prioritized transaction speed and regulatory clarity over a slightly higher, conditional valuation.
Background: What Went Wrong at Aviom?
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Governance Concerns & Overstated Books: In late 2024, audits and probes led by the National Housing Bank (NHB) revealed that Aviom had overstated its mutual fund investments to artificially inflate cash balances on its balance sheet.
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IBC Admission: Following payment defaults and severe accounting irregularities, the RBI superseded Aviom’s board in January 2025 and formally initiated insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) in February 2025.
