Videocon Promoter Venugopal Dhoot Declared Bankrupt by NCLT
NCLT declares Videocon promoter Venugopal Dhoot bankrupt following an SBI plea after his repayment plan for massive debts was rejected.
In a significant legal blow to the former head of the Videocon empire, the National Company Law Tribunal (NCLT), Mumbai Bench, has officially declared Venugopal Nandlal Dhoot bankrupt. The decision comes following a petition filed by the State Bank of India (SBI) after Dhoot's personal insolvency resolution process and his proposed repayment plan failed to gain traction.
The Road to Bankruptcy
The bankruptcy order, passed on November 5 by Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati, was issued under the Insolvency and Bankruptcy Code (IBC). The legal battle began when SBI initiated proceedings against Dhoot in his capacity as a personal guarantor for various credit facilities extended to Videocon Industries Limited (VIL).
Dhoot had provided personal guarantees for several financial arrangements, including:
- Term loans
- Facilities related to Videocon Telecommunications Limited (VTL)
- Working capital loans
Lenders invoked these guarantees back in February 2018. The initial demand notices were staggering, including claims of Rs 3,171.37 crore for rupee term loan facilities, Rs 676.91 crore for VTL facilities, and Rs 795.57 crore for working capital, all exclusive of applicable interest.
A Failed Repayment Attempt
While Videocon Industries entered the corporate insolvency resolution process in June 2018—eventually leading to a resolution plan by Twin Star Technologies Limited in June 2021—Dhoot's personal struggle continued. His personal insolvency resolution process began in April 2026, but his attempt to settle the debt was rejected by creditors.
Dhoot had proposed a repayment plan centered around a development project in Siliguri, offering Rs 600 crore to be paid over 36 months. However, the Tribunal noted several flaws in this proposal:
- The plan was contingent on future developments, approvals, and cash flows.
- There was no provision for any upfront payment.
- The resolution professional reported that the plan was not prepared in consultation with them, as mandated by the IBC.
Consequently, the NCLT rejected the plan on July 17, terminating the insolvency resolution process and clearing the way for bankruptcy proceedings.
The Massive Debt Figure
The scale of the default is immense. In its bankruptcy petition, the State Bank of India stated that the total amount in default, which includes interest and penalties, reached a staggering Rs 1,26,68,06,12,956.76 (approximately Rs 12,668 crore) as of September 30, 2026.
What Happens Next?
Satisfied that the petition met all requirements under Section 123 of the IBC, the Tribunal has appointed Asish Narayan as the Bankruptcy Trustee to oversee the process.
The legal implications are immediate and far-reaching:
- Asset Transfer: Dhoot’s estate now vests immediately in the Bankruptcy Trustee, who will administer and distribute assets among creditors.
- Financial Disclosure: Dhoot is required to submit his statement of financial position to the trustee within seven days.
- Claims Process: The Bankruptcy Trustee must notify creditors, issue a public notice for claims, and submit a preliminary report to the NCLT and the Committee of Creditors within 90 days.
This bankruptcy order will remain in effect until Dhoot is officially discharged under Section 138 of the Insolvency and Bankruptcy Code.