Aviom India Housing flags fraud, warns of payment delays amid NHB audit

Aviom India Housing Finance has informed its creditors about an ongoing audit by the National Housing Bank (NHB) following the discovery of fraudulent transactions during a recent onsite supervisory inspection. The company warned that this could delay repayments to creditors.

CNBC-TV18 has accessed Aviom India Housing’s communication to its creditors.

In the letter addressed to its lenders, Aviom detailed that the NHB had initiated a forensic audit based on findings during a snap inspection.

The inspection flagged concerns, including irregularities in “the statement of accounts of mutual fund(s),” which appeared to be manipulated.

Aviom acknowledged that the audit might lead to a restatement of previously submitted financial data.

“The company is currently undergoing an audit by an independent third-party forensic auditor appointed by the National Housing Bank (NHB),” the letter stated. “The NHB Audit was initiated following the regular on-site supervisory inspection that resulted in observations, including that the statement of accounts of mutual fund(s) appear to be managed.”

Aviom also disclosed that it had filed a criminal complaint with the Economic Offences Wing (EOW) on November 19, 2024. Additionally, the company’s former statutory auditors had advised against relying on its financial statements for the past three financial years.

The current auditors raised concerns under Section 143(12) of the Companies Act, 2013, prompting the board to initiate an internal investigation with independent advisors.

The letter further highlighted the company’s liquidity challenges, exacerbated by approximately ₹35 crore in “sticky receivables” and delays in raising capital.

These issues, it noted, could impact its ability to meet repayment obligations. Aviom stated that ongoing discussions with potential investors had stalled due to the pending finalization of its financial statements, currently under review.

“The delay in the finalisation of financial statements, pending the NHB Audit, has caused delays in raising capital. These proceeds were intended to meet repayment commitments and fund onward lending. Further, short-term liquidity has been significantly impacted due to sticky receivables amounting to approximately ₹35 crore. We are making every effort to recover this amount promptly,” Aviom said in the letter.