Mumbai – November 6: In a landmark ruling under India’s corporate insolvency regime, the Mumbai bench of the National Company Law Tribunal (NCLT) has declared Venugopal Nandlal Dhoot, former promoter and chairman of Videocon Industries, bankrupt. The adjudicating authority admitted a petition initiated by the State Bank of India (SBI) over unpaid dues exceeding Rs 12,668 crore linked to invoked personal guarantees.
Delivering the verdict under Section 126 of the Insolvency and Bankruptcy Code (IBC), 2016, a two-member bench comprising Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati ordered that Dhoot’s entire personal estate immediately vest in the court-appointed Bankruptcy Trustee, Asish Narayan, for statutory administration and eventual distribution among financial creditors.
“We are satisfied that the Petition complies with all the requirements prescribed in Section 123 of the Code. Therefore, we consider it proper to admit this Petition,” the Tribunal observed in its ruling. Under the court’s directions, Dhoot must furnish a comprehensive statement detailing his global assets, liabilities, and financial standing to the bankruptcy trustee within seven days. The trustee has been directed to invite claims from creditors and submit a preliminary report within 90 days.
The high-stakes bankruptcy proceedings stem from multi-thousand-crore credit facilities, consortium term loans, and working capital lines extended by SBI and its erstwhile associate banks to Videocon Industries Limited (VIL) and borrowings connected to Videocon Telecommunications Limited. Dhoot had executed multiple personal guarantees pledging repayment of these massive exposures. Following catastrophic defaults across group companies, lenders formally invoked his personal guarantees in February 2018.
While Videocon Industries entered Corporate Insolvency Resolution Proceedings (CIRP) in June 2018—later consolidated with 12 other group entities—SBI separately initiated personal insolvency actions against Dhoot as an individual guarantor. On April 8 this year, the NCLT admitted SBI’s plea and initiated Dhoot’s personal insolvency resolution process.
During resolution deliberations, Dhoot submitted a repayment offer proposing to pay Rs 600 crore spread across 36 months, claiming the amount would be financed through a proposed commercial real estate venture in Siliguri, West Bengal. However, the Resolution Professional reported that the plan was drafted unilaterally without mandatory consultations, provided no upfront capital commitment, and remained entirely contingent on speculative cash flows, future market dynamics, and unobtained regulatory approvals.
Creditors subsequently rejected the repayment blueprint as unviable. On July 17, the NCLT formally dismissed the plan and terminated Dhoot’s personal insolvency process, granting lenders liberty to initiate formal bankruptcy proceedings. SBI, represented by Cyril Amarchand Mangaldas, subsequently filed the bankruptcy plea, quantifying Dhoot’s total outstanding default at Rs 12,668.06 crore, inclusive of interest and penal charges as of September 30.
Published by True Roots Media