NCLT Declares Former Videocon Promoter Venugopal Dhoot Bankrupt Over Rs 12,668 Crore SBI Loan Default

The Mumbai bench of the National Company Law Tribunal (NCLT) has declared former Videocon Industries promoter and director Venugopal Nandlal Dhoot bankrupt over loan defaults of Rs 12,668.06 crore owed to the State Bank of India (SBI). The order was passed after Dhoot’s proposed repayment plan of Rs 600 crore was rejected by creditors, leading to the failure of his personal insolvency resolution process.

A two-member NCLT 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 manage Dhoot’s estate and distribute the available assets among creditors according to the provisions of the law. In its order, the tribunal formally declared Venugopal Nandlal Dhoot, who had provided personal guarantees for the loans, bankrupt.

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The bankruptcy proceedings relate to personal guarantees given by Dhoot for credit facilities taken by Videocon Industries Limited (VIL) from SBI and its erstwhile associate banks. Videocon Telecommunications Limited (VTL) had also availed a portion of these credit facilities as a co-obligor. According to SBI’s petition, the total outstanding dues, including interest and penalties, stood at Rs 12,668.06 crore as of September 30, 2026.

The outstanding amount included Rs 9,322.10 crore under rupee term loan facilities, Rs 1,437.76 crore under facilities related to Videocon Telecommunications and Rs 1,908.19 crore under working capital facilities. SBI had invoked Dhoot’s personal guarantees through demand notices issued in February 2018 following defaults in repayment of the loans. These guarantees covered credit facilities extended by SBI and its former associate banks, 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 later consolidated with those involving other Videocon group companies. In June 2021, the NCLT approved a resolution plan submitted by Twin Star Technologies Limited. However, Dhoot’s personal insolvency proceedings continued separately because of the personal guarantees he had provided for the loans.

The NCLT initiated Dhoot’s personal insolvency resolution process on April 8, 2026. During the proceedings, he submitted a repayment plan on June 16, proposing to repay Rs 600 crore over a period of 36 months through a development project in Siliguri. According to the PTI report, the proposed repayment amount represented only 0.42% of the total admitted dues. The plan was also dependent on the project receiving the required approvals and generating future cash flows. It did not include any upfront payment to creditors.

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The resolution professional raised concerns over the conditions attached to the repayment proposal. It was also reported that the plan had not been prepared in consultation with the resolution professional, as required under Section 105 of the IBC. Following this, creditors decided to seek the termination of the personal insolvency resolution process and initiate bankruptcy proceedings.

On July 17, the NCLT rejected Dhoot’s repayment plan under Section 114 of the Insolvency and Bankruptcy Code and terminated the personal insolvency resolution process. The order allowed both Dhoot and his creditors to initiate bankruptcy proceedings in accordance with the provisions of the Code. SBI subsequently filed its bankruptcy petition on September 24, within the three-month period prescribed under Section 121(2) of the IBC.

After examining the records and documents, the tribunal found that SBI’s petition fulfilled all the statutory requirements under Section 123 of the Code. It therefore admitted the bank’s petition and ordered Dhoot’s bankruptcy.

Following the order, Dhoot’s estate will immediately vest in the Bankruptcy Trustee, who will take control of and administer his assets for distribution among creditors. The tribunal has directed Dhoot to submit his statement of financial position to the trustee in the prescribed format within seven days of the bankruptcy commencement date.

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The Bankruptcy Trustee has also been directed 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. The trustee will also be required to submit quarterly progress reports to keep the tribunal and creditors informed about the proceedings.

The NCLT clarified that the bankruptcy order would remain in force until Dhoot is formally discharged under Section 138 of the Insolvency and Bankruptcy Code.

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