Former Videocon promoter Venugopal Dhoot declared bankrupt: NCLT issues order on SBI’s petition; Action on loan default of ₹12,668 crore

Venugopal Nandlal Dhoot, former promoter and director of Videocon Industries. (file photo)

The Mumbai Bench of the National Company Law Tribunal (NCLT) has declared former promoter and director of Videocon Industries Venugopal Nandlal Dhoot as bankrupt. The tribunal has issued this order while hearing the petition filed by State Bank of India (SBI).

This step has been taken after the failure of Dhoot’s personal insolvency resolution process and repayment plan. The bench of Vinay Goyal and Charanjit Singh Gulati passed this bankruptcy order on November 5 under the Insolvency and Bankruptcy Code (IBC).

Personal guarantee and dues details

NCLT noted that SBI had initiated bankruptcy proceedings against Dhoot in his capacity as personal guarantor of Videocon Industries Limited (VIL) for credit facilities availed from the bank.

Dhoot had given personal guarantee for several credit facilities given to the company such as Rupee Term Loan, facilities related to Videocon Telecommunications Limited and working capital loan. The bank invoked these guarantees in February 2018. The claims included in the bank’s demand notice are as follows…

Insolvency background of Videocon

Videocon Industries was admitted into the corporate insolvency resolution process in June 2018. The proceedings were later clubbed with other Videocon Group companies. After this, in June 2021, NCLT approved the resolution plan submitted by Twin Star Technologies Limited.

Why was the repayment plan rejected?

Venugopal Dhoot’s personal insolvency resolution process was started in April 2026. However, his proposed repayment plan was not acceptable to the creditors. Dhoot had proposed repayment of ₹600 crore over a period of 36 months through a proposed development project in Siliguri.

The tribunal found that the offer was dependent on future development, approvals and cash flow and did not include any upfront payment. Further, the resolution professional stated that this repayment plan was not prepared in consultation with them as per the IBC rules.

After this the creditors decided to stop the personal insolvency process and start the bankruptcy process. Earlier on July 17, NCLT had ended the personal insolvency process by rejecting the repayment plan and had given the right to creditors and debtors to initiate bankruptcy proceedings under the rules of IBC.

Total default amount reached ₹12,668 crore

After this SBI filed bankruptcy petition. The bank said that by September 30, 2026, the total default amount including interest and penalty has reached ₹ 12,668 crore. After examining the documents, the Tribunal held that the petition complied with all the requirements of Section 123 of the IBC and accepted it.

Appointment of trustee and further process

Order to submit report within 90 days

The bankruptcy trustee has been ordered to inform creditors, invite claims by issuing a public notice and submit a preliminary report to NCLT and Committee of Creditors within 90 days. This order will remain effective till the discharge of Dhoot under Section 138 of IBC.

What is bankruptcy and personal guarantee?

Personal Guarantee: When a person gives guarantee of his personal assets against a company loan, if the loan is not repaid, the bank can recover the dues directly from that person.

Bankruptcy: Under the Insolvency and Bankruptcy Code (IBC), when a debtor is unable to repay his debt, the court declares him bankrupt. After this, all his properties go to the court appointed trustee, who sells them and returns the money to the lenders.

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