From corporate boardrooms to personal bankruptcy proceedings: former Videocon Industries promoter Venugopal Nandlal Dhoot has been declared bankrupt by the Mumbai bench of the NCLT over SBI’s ₹12,668.06-crore claim arising from personal guarantees furnished for Videocon group borrowings-File Photo
- SBI’s bankruptcy petition admitted after creditors reject Dhoot’s proposed ₹600-crore repayment plan
- Repayment proposal hinged on a proposed Siliguri real estate project, future approvals and uncertain cash flows
- Personal guarantees for Videocon group loans invoked by lenders following defaults in February 2018
- NCLT appoints Asish Narayan as bankruptcy trustee to take charge of Dhoot’s estate and distribute assets among creditors
- Trustee directed to invite claims, take stock of assets and submit preliminary report within 90 days
NE LAW & BUSINESS BUREAU
NEW DELHI, NOV 6
A proposed ₹600-crore repayment spread over three years could not rescue former Videocon Industries promoter Venugopal Nandlal Dhoot from bankruptcy proceedings over SBI’s staggering ₹12,668.06-crore claim. The National Company Law Tribunal (NCLT), Mumbai, has declared Dhoot bankrupt, sending a strong message on the financial consequences of personal guarantees furnished for corporate borrowings when loan defaults spiral beyond recovery.
The tribunal passed the order on Thursday, November 5, admitting the State Bank of India’s (SBI) bankruptcy petition against Dhoot in his capacity as a personal guarantor for credit facilities extended to Videocon group companies.
The bench, comprising Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati, found that SBI’s petition complied with the statutory requirements under Section 123 of the Insolvency and Bankruptcy Code (IBC), 2016. The bankruptcy order was passed under Section 126 of the Code.
The tribunal observed: “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 NCLT appointed insolvency professional Asish Narayan as the bankruptcy trustee and directed that Dhoot’s estate vest immediately in him for administration and distribution among creditors in accordance with the IBC.
₹12,668-crore liability
According to SBI, Dhoot’s outstanding liabilities amounted to ₹12,668.06 crore, including interest and penalties, as on September 30, 2026.
The claims arise from personal guarantees furnished by Dhoot for various credit facilities extended by SBI and its erstwhile associate banks to Videocon Industries Ltd and other group entities, including Videocon Telecommunications Ltd.
The facilities comprised rupee term loans, borrowings connected with Videocon Telecommunications and working capital facilities.
Following repayment defaults, the lenders invoked Dhoot’s personal guarantees through demand notices issued in February 2018, seeking recovery from him in his capacity as guarantor.
The liabilities, as detailed in the proceedings, included ₹9,322.10 crore under rupee term loans, ₹1,437.76 crore under Videocon Telecommunications-related facilities and ₹1,908.19 crore under working capital borrowings.
Videocon Industries was admitted into corporate insolvency resolution proceedings in June 2018. The proceedings were subsequently consolidated with those involving 12 other Videocon group companies. The NCLT approved a resolution plan submitted by Twin Star Technologies Ltd in June 2021.
₹600-crore offer fails to impress creditors
The bankruptcy proceedings followed the failure of Dhoot’s separate personal insolvency resolution process, which commenced in April 2026.
During the proceedings, Dhoot proposed a repayment plan offering ₹600 crore over 36 months, with the funds expected to be generated through a proposed real estate development project in Siliguri.
However, the resolution professional flagged significant concerns over the proposal. The plan depended on future project development, regulatory approvals and projected cash flows that could not be independently verified. It also did not provide for any upfront payment.
The resolution professional further pointed out that the repayment plan had not been prepared in consultation with him, as required under Section 105 of the IBC.
Creditors subsequently declined to approve the proposal.
On July 17, 2026, the NCLT rejected the repayment plan and terminated Dhoot’s personal insolvency resolution process, while allowing creditors to initiate bankruptcy proceedings under the Code.
SBI thereafter approached the tribunal with its bankruptcy petition on September 24, within the prescribed three-month period.
Trustee to take control of estate
With the bankruptcy order now in place, the administration of Dhoot’s estate will pass to the appointed bankruptcy trustee, who will oversee the process of identifying assets, inviting creditor claims and distributing recoveries in accordance with the statutory framework.
The tribunal has directed Dhoot to submit his statement of financial position to the trustee within seven days.
The trustee has also been instructed 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 operative until Dhoot is discharged under Section 138 of the IBC.
The development marks another significant chapter in the long-running Videocon financial crisis, bringing the consequences of corporate loan defaults into sharp focus for a promoter who had personally guaranteed the borrowings.