NCLT declares Videocon promoter Venugopal Dhoot bankrupt over ₹ 12,668 crore due to SBI

The National Company Law Tribunal (NCLT) in Mumbai has declared Videocon promoter Venugopal Dhoot in bankruptcy over dues of ₹State Bank of India (SBI) is claiming 12,668 million crowns. “Venugopal Nandlal Dhoot, the personal guarantor herein, is declared bankrupt,” the NCLT Mumbai bench said in its order on Thursday.

The tribunal appointed Asish Narayan as receiver and directed Dhoot to submit details of his financial position within seven days. The trustee was ordered to call creditors for claims and submit a preliminary report within 90 days.

Dhoot’s bankruptcy estate will be entrusted to an administrator who will administer the assets and distribute the recovered amounts to creditors in accordance with the Insolvency and Bankruptcy Code (IBC).

The order follows the failure of Dhoot’s personal insolvency proceedings, which began on April 8 after NCLT Mumbai admitted SBI’s insolvency petition against him. SBI invoked Dhoot’s personal guarantees for loans taken by Videocon Industries Ltd and Videocon Telecommunications Ltd.

Inquiries from the Mint to SBI and receiver Asish Narayan remained unanswered at the time of publication. Attempts to reach Dhoot for comment were unsuccessful.

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₹Installment plan of 600 million crowns

Bankruptcy proceedings followed bankruptcy and ₹Dhoot proposed a repayment plan of Rs 600 crore during his personal insolvency proceedings. According to the plan, the lenders were to be paid over a period of 36 months from the money from the real estate project in Siliguri.

Lenders rejected the proposal, citing concerns about its dependence on the project, regulatory approvals and uncertain future cash flows. The plan also offered no upfront payment, with repayment contingent on the successful development and monetization of the project.

The NCLT rejected the repayment plan on 17 July, ending the personal insolvency resolution process of Dhoot, allowing creditors to start bankruptcy proceedings.

The tribunal has previously noted that the proposed repayment mechanism is highly dependent on “future developments, approvals and cash flows that cannot be verified” and that it offers nothing in advance.

The personal bankruptcy proceedings date back to 2010 and 2012, respectively, when Videocon Industries and Videocon Telecommunications took over various credit and operating facilities from SBI and other banks. Dhoot as a promoter gave personal guarantees for these loans through guarantee deeds executed in those years.

After Videocon defaulted, SBI invoked Dhoot’s personal guarantees in February 2018. Subsequently, on June 6, 2018, Videocon Industries was admitted into company insolvency proceedings.

SBI later issued a summons to Dhoot on 23 July 2020 and sought ₹6,157.57 million crowns. After the amount remained unpaid, SBI filed an application under Section 95 of the IBC in September 2020 with the NCLT Mumbai to initiate insolvency proceedings against Dhoot.

SBI’s total entitlement to ₹12,668.06 million contains ₹9,322.10 crore from Rupee Term Loan (RTL), ₹1,437.76 crore from Videocon Telecommunications Ltd (VTL) facilities and ₹1,908.19 crore from working capital facility including interest and penalty.

Dhoot contested the proceedings, also on the ground of limitation and arguing that one of the guarantees was executed in favor of SBICAP Trustee Company rather than SBI. The NCLT rejected these objections.

On 8 April 2026, the NCLT allowed SBI’s application and initiated the insolvency resolution process of Dhoot. Asish Narayan was appointed as a problem solving expert.

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From the collapse of Videocon to the bankruptcy of Dhoot

Dhoot’s personal bankruptcy is the latest consequence of the wider collapse of the Videocon group. Videocon, once among India’s leading consumer electronics brands, has expanded into telecommunications, oil and gas, live television and other businesses, relying heavily on debt to finance its expansion.

The group’s financial position deteriorated after its telecom business suffered a major setback when the Supreme Court canceled 122 telecom licenses in 2012, including that of Videocon. Its core consumer electronics business has also faced increasing competition from global brands.

In 2017, the Reserve Bank of India named Videocon among the top 12 large corporate accounts for insolvency proceedings under the IBC. Videocon Industries entered insolvency in June 2018 and the process was later consolidated with other Videocon group companies.

Creditors eventually admitted claims around ₹64,500 crore against the consolidated total. In 2021 NCLT approved a ₹2.962 million resolution plan submitted by Twin Star Technologies.

The resolution plan was subsequently challenged at the NCLAT, which delayed its approval until January 2022. Twin Star then approached the Supreme Court. The Supreme Court maintained the status quo regarding insolvency proceedings from February 2022 and the challenge remains pending.

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