NCLT declares Videocon promoter Venugopal Dhoot bankrupt on SBI plea; appoints bankruptcy trustee

The National Company Law Tribunal (NCLT), Mumbai Bench, has declared former Videocon Industries promoter and director Venugopal Nandlal Dhoot bankrupt on a petition filed by the State Bank of India (SBI), after the failure of his personal insolvency resolution process and repayment plan.

The National Company Law Tribunal (NCLT), Mumbai Bench, has declared former Videocon Industries promoter and director Venugopal Nandlal Dhoot bankrupt on a petition filed by the State Bank of India (SBI) after the failure of his personal insolvency resolution process and repayment plan. The Tribunal, comprising Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati, passed the bankruptcy order on November 5 under the Insolvency and Bankruptcy Code (IBC).

The NCLT noted that SBI had initiated bankruptcy proceedings against Dhoot in his capacity as a personal guarantor for credit facilities availed by Videocon Industries Limited (VIL). According to the order, Dhoot, the erstwhile promoter and director of Videocon Industries, had executed personal guarantees in relation to various credit facilities extended to the company. The facilities included term loans, facilities relating to Videocon Telecommunications Limited and working capital loans.

The Tribunal recorded that the guarantees were invoked by the lenders in February 2018. The demand notices included claims of Rs 3,171.37 crore under the rupee term loan facilities, Rs 676.91 crore under the VTL facilities and Rs 795.57 crore under the working capital facilities, along with applicable interest and other amounts. Videocon Industries was admitted into the corporate insolvency resolution process in June 2018. The proceedings were subsequently consolidated with those involving other Videocon group companies, and a resolution plan submitted by Twin Star Technologies Limited was approved by the NCLT in June 2021.

The order noted that Dhoot’s personal insolvency resolution process was initiated in April 2026. However, his proposed repayment plan did not find approval from creditors. Dhoot had submitted a repayment proposal involving a proposed development project at Siliguri, offering Rs 600 crore over a period of 36 months. The Tribunal recorded that the proposal was contingent on future development, approvals and cash flows, and did not provide for any upfront payment.

The resolution professional had also reported that the repayment plan had not been prepared in consultation with him as required under the IBC. The creditors subsequently decided to seek closure of the personal insolvency resolution process and initiation of bankruptcy proceedings. The NCLT had earlier, on July 17, rejected the repayment plan and terminated the personal insolvency resolution process, while leaving the creditors and the debtor entitled to initiate bankruptcy proceedings under the provisions of the IBC.

SBI subsequently filed the present bankruptcy petition. The bank stated that the total amount in default, including interest and penalties, stood at Rs 1,26,68,06,12,956.76, or about Rs 12,668 crore, as on September 30, 2026. After examining the record and documents placed before it, the Tribunal said it was satisfied that the petition complied with the requirements prescribed under Section 123 of the IBC.

“We are satisfied that the petition complies with all the requirements prescribed in Section 123 of the Code,” the Tribunal said before admitting the petition. The NCLT consequently declared Dhoot bankrupt and appointed Asish Narayan as the Bankruptcy Trustee to conduct the bankruptcy process.

The Tribunal directed that Dhoot’s estate would immediately vest in the Bankruptcy Trustee and would be administered and distributed among creditors in accordance with the provisions of the IBC. It also directed Dhoot to submit his statement of financial position to the trustee within seven days. The Bankruptcy Trustee has been directed to notify creditors, issue a public notice inviting claims and submit a preliminary report to the NCLT and the Committee of Creditors within 90 days of the bankruptcy commencement date.

The order will remain in effect until Dhoot is discharged under Section 138 of the Insolvency and Bankruptcy Code, the Tribunal said. (ANI)