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

The Mumbai bench of the National Company Law Tribunal (NCLT) has declared former Videocon Industries promoter and director Venugopal Nandlal Dhoot bankrupt, admitting a petition filed by the State Bank of India (SBI) over defaulted dues of Rs 12,668.06 crore. The order follows the failure of Dhoot's personal insolvency resolution process, after creditors rejected his proposed repayment plan of Rs 600 crore.

A two-member bench 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 tribunal also appointed Asish Narayan as the Bankruptcy Trustee to oversee the proceedings and administer Dhoot's estate for distribution among creditors.

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"Venugopal Nandlal Dhoot, the Personal Guarantor herein, is declared as Bankrupt," the tribunal said in its order.

The bankruptcy proceedings stem from personal guarantees furnished by Dhoot for credit facilities availed by Videocon Industries Limited (VIL) from SBI and its erstwhile associate banks, several of which were subsequently merged with SBI. Videocon Telecommunications Limited (VTL) had also availed a portion of the facilities as a co-obligor.

According to SBI's petition, the total outstanding default, including interest and penalties, stood at Rs 12,668.06 crore as of September 30, 2026. This comprised Rs 9,322.10 crore under rupee term loan facilities, Rs 1,437.76 crore under VTL-related facilities and Rs 1,908.19 crore under working capital facilities.

The lender had invoked Dhoot's personal guarantees through demand notices issued in February 2018, following defaults on the loan facilities. The guarantees covered credit extended by SBI and its erstwhile associates, including State Bank of Hyderabad, State Bank of Mysore, State Bank of Travancore, State Bank of Bikaner and Jaipur, and State Bank of Patiala.

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Videocon Industries was admitted into the corporate insolvency resolution process (CIRP) in June 2018. The proceedings were subsequently consolidated with those involving other Videocon group companies. In June 2021, the NCLT approved a resolution plan submitted by Twin Star Technologies Limited.

Dhoot's personal insolvency proceedings, however, continued separately in his capacity as a personal guarantor.

The NCLT initiated his personal insolvency resolution process on April 8, 2026. During the proceedings, Dhoot submitted a repayment plan on June 16, proposing to repay Rs 600 crore over 36 months through a development project in Siliguri.

The proposed amount represented just 0.42% of the admitted dues, according to the PTI report. The proposal was also contingent on the development project securing the necessary approvals and generating future cash flows, without providing for any upfront payment.

The resolution professional flagged these conditions and reported that the repayment plan had not been prepared in consultation with him, as required under Section 105 of the IBC. Creditors subsequently decided to seek the termination of the personal insolvency resolution process and move for bankruptcy proceedings.

On July 17, the tribunal rejected the repayment plan under Section 114 of the Code and terminated the personal insolvency resolution process, leaving both the debtor and creditors free to initiate bankruptcy proceedings in accordance with the IBC.

SBI subsequently filed its bankruptcy petition on September 24, within the three-month period prescribed under Section 121(2) of the Code.

Admitting the lender's plea, the tribunal said it had examined the records and documents and found that the petition met the statutory requirements.

"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."

Following the order, Dhoot's estate will immediately vest in the Bankruptcy Trustee, who will administer and distribute it among creditors in accordance with the provisions of the IBC.

The tribunal has directed Dhoot to submit his statement of financial position to the Bankruptcy Trustee in the prescribed format within seven days of the bankruptcy commencement date.

The trustee has also been instructed to issue a public notice inviting claims from creditors and submit a preliminary report to the NCLT and the Committee of Creditors within 90 days of the commencement of the bankruptcy proceedings. Quarterly progress reports will follow.

The bankruptcy order will remain in force until Dhoot is discharged under Section 138 of the Insolvency and Bankruptcy Code, the tribunal said.

With inputs from agencies