Govt seeks SC nod to claim dues in Videocon insolvency case

New Delhi: Nearly five years after initiation of insolvency proceedings against the Videocon group, the petroleum ministry Thursday moved the Supreme Court seeking intervention in the case.

The ministry has sought recovery of $525.62 million towards its "legitimate sovereign claims" against debt-laden Videocon Industries, even as it raised allegations that Vedanta group company Twinstar Technologies' bid has no provision to clear the government's dues.

The ministry claimed that Videocon owes millions of dollars to it under the Production Sharing Contract of October 28, 1994, which it has "wrongfully withheld."


Meanwhile, Abhijit Guhathakurta, the resolution professional of Videocon Industries, moved a fresh plea seeking a direction to the government to return $353.74 million, beyond the $86 million that has been returned and refunded, that four oil marketing companies (OMCs) have diverted to the former. The RP has sought vacation of the apex court's November 13, 2019 that allowed the government to receive the entire sale proceeds of oil and gas towards the alleged provisional unpaid share of profit petroleum dues from all Ravva Oil Fields joint venture partners, including Videocon Industries, under the PSC.

The SC is likely to hear the case next on November 11.

The NCLT had in June 2021 accepted Twinstar's bid for Videocon Industries and 12 other group companies, at a steep haircut for lenders who had a collective ₹43,743 crore exposure. The National Company Law Appellate Tribunal (NCLAT) had also approved Twinstar's ₹2,962 crore bid.