The National Company Law Tribunal (NCLT) Mumbai bench has formally declared Venugopal Nandlal Dhoot, the former promoter and director of Videocon Industries, as bankrupt. The order, issued on November 5 by Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati, follows a petition filed by the State Bank of India (SBI) in response to the collapse of Dhoot’s personal insolvency resolution process.
The bankruptcy proceedings were initiated as a result of Dhoot’s role as a personal guarantor for credit facilities extended to Videocon Industries Limited (VIL). According to the tribunal's findings, Dhoot had executed personal guarantees for a variety of financial products, including working capital loans, term loans, and facilities related to Videocon Telecommunications Limited. Lenders first invoked these guarantees in February 2018, citing significant outstanding dues.
The scale of the financial default cited by the bank is substantial. In its petition, SBI noted that the total amount in default, including applicable interest and penalties, reached approximately Rs 12,668 crore as of September 30, 2026. This figure encompasses multiple categories of loans that were previously granted to the Videocon group during its period of operation.
Videocon Industries itself underwent a corporate insolvency resolution process starting in June 2018. That process, which was later consolidated with other group entities, resulted in the NCLT approving a resolution plan submitted by Twin Star Technologies Limited in June 2021. However, the subsequent process regarding Dhoot’s personal guarantees remained unresolved, leading to the current bankruptcy order.
During the personal insolvency resolution process, which began in April 2026, Dhoot had submitted a proposal to repay creditors by developing a project in Siliguri. He offered a sum of Rs 600 crore to be paid over a period of 36 months. However, the proposal was rejected by creditors and the tribunal, as it was deemed contingent on future cash flows and approvals, lacking any provision for an immediate upfront payment. Furthermore, the resolution professional reported that the plan had been drafted without the necessary consultation required under the Insolvency and Bankruptcy Code (IBC).
On July 17, the tribunal terminated the personal insolvency resolution process, granting creditors the liberty to pursue bankruptcy proceedings under the IBC. Upon reviewing the documents submitted by SBI, the NCLT confirmed that the bank’s petition satisfied the criteria set out under Section 123 of the Code. Consequently, the tribunal admitted the petition and officially declared the former promoter bankrupt.
As part of the court order, Asish Narayan has been appointed as the Bankruptcy Trustee to oversee the administration of Dhoot’s estate. The tribunal has directed that all of Dhoot’s assets now vest in the trustee, who will manage and distribute them to creditors according to the established provisions of the IBC. Dhoot has been instructed to submit a detailed statement of his financial position to the trustee within seven days.
Looking ahead, the Bankruptcy Trustee is required to issue a public notice inviting claims from creditors and must submit a preliminary report to the NCLT and the Committee of Creditors within 90 days. The order will remain in effect until Dhoot is formally discharged under Section 138 of the Insolvency and Bankruptcy Code, marking a definitive shift in the legal handling of the former promoter’s financial liabilities.
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