The National Company Law Tribunal (NCLT) has formally declared Venugopal Nandlal Dhoot, the former promoter and director of Videocon Industries, as bankrupt. The ruling came after Dhoot defaulted on credit facilities amounting to Rs 12,668.06 crore extended by the State Bank of India (SBI) and its associated financial institutions.
The Mumbai bench of the NCLT accepted a bankruptcy application filed by SBI under Section 121 of the Insolvency and Bankruptcy Code (IBC). This development follows the collapse of Dhoot's personal insolvency resolution process, as creditors previously rejected his proposal to settle the outstanding liabilities by paying Rs 600 crore over a 36-month period.
Appointment of Bankruptcy Trustee
In its directive, the tribunal appointed insolvency professional Asish Narayan as the Bankruptcy Trustee. His mandate is to administer and distribute Dhoot’s personal estate. Under the NCLT's orders, Dhoot's entire estate now vests in the trustee, who is tasked with issuing a public notice to invite claims from creditors. A preliminary report must be submitted to the tribunal within 90 days.
Dhoot had provided personal guarantees for credit facilities obtained by Videocon Industries Limited (VIL) and Videocon Telecommunications Limited (VTL). According to SBI's filings, the total outstanding dues as of September 30, 2026, stand at Rs 12,668.06 crore.
Breakdown of Outstanding Dues
- Rupee Term Loan Facility: Rs 9,322.10 crore
- VTL Facility: Rs 1,437.76 crore
- Working Capital Facility: Rs 1,908.19 crore
The loan accounts originally went into default after various Videocon group entities encountered significant financial distress. This situation led to the initiation of corporate insolvency resolution proceedings against Videocon Industries in June 2018. Subsequently, SBI invoked the personal guarantees against Dhoot and moved the NCLT to recover its substantial exposure.
The court has further instructed Dhoot to provide a comprehensive statement detailing his financial position to the Bankruptcy Trustee within seven days, ensuring transparency in the ongoing proceedings.