Areion Group has formally sought the Reserve Bank of India's endorsement for its ₹936-crore takeover of the fraud-hit mortgage lender Aviom India Housing Finance. According to reports from The Economic Times, the deal was announced four months ago and is currently undergoing rigorous regulatory review. The acquisition represents a significant move in the housing finance sector, though the timeline for regulatory approval remains uncertain.
The Reserve Bank of India is expected to conduct an extensive 'fit-and-proper' assessment for the acquisition, as reported by The Economic Times. The regulator's scrutiny will focus on tracing the source of capital and ensuring the acquisition is backed by clean, identifiable funds. Sources indicate that the assessment will involve scrutiny beyond mere commercial considerations, with particular attention to the source of funds, governance track record and ownership structure behind Areion Group. The RBI's comprehensive approach reflects its commitment to maintaining high standards for financial sector acquisitions, particularly given the nature of the target company's previous issues.
According to sources cited by The Economic Times, the RBI's assessment will ensure the acquisition is backed by legitimate capital. The regulator's focus will be on tracing the source of capital and ensuring the transaction involves clean, identifiable funds. This comprehensive approach reflects the RBI's commitment to maintaining high standards for financial sector acquisitions, particularly given the nature of the target company's previous issues. The assessment will likely involve extensive scrutiny of Areion Group's governance track record and ownership structure as part of the comprehensive fit-and-proper evaluation process.
