NCLT declares Videocon’s Venugopal Dhoot bankrupt over Rs 12,668-crore SBI dues

The National Company Law Tribunal (NCLT) has declared Venugopal Nandlal Dhoot, former promoter and director of Videocon Industries Ltd, bankrupt over unpaid loan guarantees worth Rs 12,668.06 crore, following a petition by the State Bank of India (SBI).

A two-member Mumbai bench of the tribunal, comprising Member (Judicial) Vinay Goel and Member (Technical) Charanjeet Singh Gulati, passed the order on November 5 under Section 126 of the Insolvency and Bankruptcy Code (IBC). The bench appointed insolvency professional Asish Narayan, who had earlier handled Dhoot’s personal insolvency resolution process, as the bankruptcy trustee.

SBI is seeking Rs 12,668.06 crore from Dhoot as on September 30, 2026, including interest and penalties, in his capacity as personal guarantor for loans taken by Videocon Industries and other group entities.

The bank’s claim arises from three sets of guarantees signed by Dhoot. These include Rs 9,322.11 crore under a 2012 rupee term loan agreement, under which Videocon Industries borrowed Rs 2,972 crore from SBI and five erstwhile associate banks; Rs 1,437.76 crore relating to a 2010 credit facility originally extended to Videocon Telecommunications Ltd and subsequently taken over by Videocon Industries as a co-obligor in 2016; and Rs 1,908.19 crore under the group’s working capital consortium arrangements.

The five associate banks — State Bank of Hyderabad, State Bank of Mysore, State Bank of Travancore, State Bank of Bikaner and Jaipur, and State Bank of Patiala — merged with SBI in April 2017, following which their loans were deemed to have been granted by SBI.

SBI had invoked the personal guarantees in February 2018, issuing demand notices for Rs 3,171.37 crore, Rs 676.91 crore and Rs 795.57 crore under the three facilities, respectively.

The bankruptcy proceedings follow the failure of Dhoot’s personal insolvency resolution process (PIRP), which the NCLT had initiated on April 8, 2026, on an application filed by SBI under Section 95 of the IBC in 2020.

During the resolution process, Dhoot had proposed a repayment plan of Rs 600 crore over 36 months, linked to a proposed real estate development project in Siliguri, West Bengal. However, the proposal failed to convince creditors, who questioned its viability and the uncertainty surrounding the project’s execution and cash flows.

According to the tribunal’s order, Dhoot initially emailed a revised repayment proposal on May 11, stating that a detailed plan would be submitted within 15 days. Creditors, however, found the proposal contingent and non-compliant with the provisions of the IBC at a meeting on June 11.

Ahead of the adjourned creditors’ meeting on June 16, Dhoot submitted a detailed repayment plan accompanied by a project report for the proposed Siliguri development.

The resolution professional subsequently informed the tribunal that the plan had not been prepared in consultation with him, as required under Section 105 of the IBC. He also pointed out that the proposed repayment depended on several uncertain factors, including project development, regulatory approvals and future cash flows. No upfront payment had been offered, while any potential realisation would take three to four years.

Following this, creditors decided to seek the closure of the personal insolvency resolution process and initiate bankruptcy proceedings. The NCLT rejected the repayment plan on July 17 under Section 114 of the IBC, terminated the resolution process and allowed creditors to pursue bankruptcy proceedings.

SBI subsequently filed its bankruptcy application on September 24, within the three-month period prescribed under Section 121(2) of the IBC, the tribunal noted.

With the bankruptcy order, Dhoot’s estate will immediately vest in the bankruptcy trustee, who will administer and distribute it among creditors in accordance with the provisions of the IBC.

The tribunal has directed Dhoot to submit a statement of his financial position to the trustee within seven days of the bankruptcy commencement date. The trustee has been asked to notify creditors within 10 days and issue a public notice inviting claims through English and vernacular newspapers.

The trustee will also have to submit a preliminary report to the tribunal and the committee of creditors within 90 days, followed by quarterly progress reports. Dhoot will be subject to the disqualifications and restrictions prescribed under Sections 140 and 141 of the IBC during the bankruptcy process.

The bench also directed SBI to make an interim payment of Rs 2 lakh to the trustee towards expenses, pending finalisation of his fees. It noted that Narayan’s authorisation to act as an insolvency professional was valid only until December 31, 2026, and directed him to ensure that it remained valid throughout the bankruptcy proceedings.

The bankruptcy order will remain in force until Dhoot is discharged under Section 138 of the IBC.

Videocon Industries was admitted to the corporate insolvency resolution process on June 6, 2018, following a petition by SBI. The proceedings were subsequently consolidated with those of 12 other Videocon group companies in August 2019. The NCLT approved the resolution plan submitted by Twin Star Technologies on June 8, 2021. Dhoot’s appeal against the approval was dismissed by the National Company Law Appellate Tribunal on January 5, 2022, according to the latest NCLT order.

Also See: NCLAT rejects Venugopal Dhoot offer to settle dues of Videocon arm Trend Electronics