NCLT declares Videocon promoter Venugopal Dhoot bankrupt over ₹12,668 crore dues to SBI

The National Company Law Tribunal (NCLT), Mumbai, has declared Videocon promoter Venugopal Dhoot bankrupt over dues of ₹12,668 crore claimed by State Bank of India (SBI). “Venugopal Nandlal Dhoot, the personal guarantor herein, is declared as bankrupt,” the NCLT Mumbai bench said in its order on Thursday.

The tribunal appointed Asish Narayan as the bankruptcy trustee and directed Dhoot to submit details of his financial position within seven days. The trustee has been directed to invite claims from creditors and submit a preliminary report within 90 days.

Dhoot’s bankruptcy estate will vest with the trustee, who will administer the assets and distribute the recoveries among creditors in accordance with the Insolvency and Bankruptcy Code (IBC).

The order follows the failure of Dhoot’s personal insolvency resolution process, which began on 8 April after the NCLT Mumbai admitted SBI’s insolvency application against him. SBI had invoked Dhoot's personal guarantees for loans taken by Videocon Industries Ltd and Videocon Telecommunications Ltd.

Mint's queries to SBI and bankruptcy trustee Asish Narayan remained unanswered at the time of publication. Attempts to reach Dhoot for comment were unsuccessful.

₹600-crore repayment plan

The bankruptcy proceedings followed the failure of a ₹600-crore repayment plan Dhoot proposed during his personal insolvency process. Under the plan, creditors were to be paid over 36 months using money from a real-estate project in Siliguri.

Creditors rejected the proposal, citing concerns over its dependence on the project, regulatory approvals, and uncertain future cash flows. The plan also offered no upfront payment, with repayment dependent on the successful development and monetisation of the project.

The NCLT rejected the repayment plan on 17 July and terminated Dhoot’s personal insolvency resolution process, allowing creditors to initiate bankruptcy proceedings.

The tribunal had earlier noted that the proposed repayment mechanism was substantially dependent on “future development, approvals and cash flows that could not be verified”, and that it offered nothing upfront.

The origins of the personal bankruptcy proceedings date back to 2010 and 2012, when Videocon Industries and Videocon Telecommunications took various loan and working-capital facilities from SBI and other banks. Dhoot, as promoter, had furnished personal guarantees for these loans through guarantee deeds executed in those years.

After the Videocon companies defaulted, SBI invoked Dhoot’s personal guarantees in February 2018. Videocon Industries was subsequently admitted into corporate insolvency proceedings on 6 June 2018.

SBI later issued a demand notice to Dhoot on 23 July 2020, seeking about ₹6,157.57 crore. After the amount remained unpaid, SBI filed an application before the NCLT Mumbai in September 2020 under Section 95 of the IBC to initiate insolvency proceedings against Dhoot.

SBI’s total claim of ₹12,668.06 crore comprises ₹9,322.10 crore from the Rupee Term Loan (RTL) facility, ₹1,437.76 crore from the Videocon Telecommunications Ltd (VTL) facility and ₹1,908.19 crore from working-capital facilities, including interest and penalties.

Dhoot challenged the proceedings, including on limitation grounds and by arguing that one of the guarantees had been executed in favour of SBICAP Trustee Company rather than SBI. The NCLT rejected these objections.

On 8 April 2026, the NCLT admitted SBI’s application and initiated Dhoot’s personal insolvency resolution process. Asish Narayan was appointed as the resolution professional.

From Videocon’s collapse to Dhoot’s bankruptcy

Dhoot’s personal bankruptcy is the latest consequence of the wider collapse of the Videocon group. Once among India’s leading consumer-electronics brands, Videocon expanded into telecom, oil and gas, direct-to-home TV and other businesses, relying heavily on debt to fund its expansion.

The group’s financial position deteriorated after its telecom business suffered a major setback when the Supreme Court cancelled 122 telecom licences in 2012, including Videocon’s. Its core consumer-electronics business also faced growing competition from global brands.

In 2017, the Reserve Bank of India identified Videocon among the first 12 large corporate accounts for insolvency action under the IBC. Videocon Industries entered insolvency in June 2018, and the process was later consolidated with other Videocon group companies.

Creditors eventually admitted claims of around ₹64,500 crore against the consolidated group. In 2021, the NCLT approved a ₹2,962-crore resolution plan submitted by Twin Star Technologies.

The resolution plan was subsequently challenged before the NCLAT, which set aside its approval in January 2022. Twin Star then approached the Supreme Court. The apex court has maintained the status quo on the insolvency proceedings since February 2022, and the challenge remains pending.

About the Author

Krishna Yadav is a Senior Correspondent at Mint, based in New Delhi, and part of the corporate bureau. He joined the newsroom as a trainee in 2023 and quickly grew into his current role. He writes on legal and regulatory developments in corporate India, with a focus on insolvency, taxation, company law, and policy. His reporting includes tracking and breaking key legal stories from the Supreme Court, Delhi High Court, NCLT, and NCLAT.<br><br>With a background in law, Krishna is known for simplifying complex legal developments into clear, accessible stories for readers. His work focuses on trends in corporate law and policy that affect businesses. This ranges from explaining tax disputes—like whether coconut hair oil is edible—to writing on why celebrities are seeking personal rights protection. He closely tracks India’s insolvency system, covering issues such as creditor losses, gaps in the process, and challenges in how the framework works in practice.<br><br>Krishna also tracks developments within law firms—covering hiring trends, how firms help companies navigate global challenges, and how the legal industry is adapting to artificial intelligence. Beyond legal reporting, he has written long-form pieces, including on-ground coverage of the 2024 general elections, capturing the scale and logistics of polling across India.<br><br>Outside work, he enjoys travelling, exploring new places, and reading about geopolitics and history.