NCLT declares Videocon's Dhoot bankrupt

New Delhi The National Company Law Tribunal (NCLT) has declared former Videocon Industries promoter Venugopal Nandlal Dhoot bankrupt, paving the way for proceedings to recover outstanding dues of more than Rs 12,668 crore owed to State Bank of India (SBI). A Mumbai bench of the tribunal admitted SBI's petition under Section 123 of the Insolvency and Bankruptcy Code (IBC), initiating bankruptcy proceedings against Dhoot in his capacity as a personal guarantor for loans extended to Videocon Group companies. The decision follows the failure of Dhoot's personal insolvency resolution process after creditors rejected his proposed repayment plan. The tribunal appointed insolvency professional Asish Narayan as the bankruptcy trustee and directed that Dhoot's estate be vested in him for administration and distribution among creditors. According to SBI, Dhoot's outstanding liabilities amounted to Rs 12,668.06 crore, including interest and penalties, as of September 30. The dues arose from personal guarantees furnished for term loans, working capital facilities and other borrowings extended to Videocon Group entities, including Videocon Telecommunications Ltd. SBI had invoked the personal guarantees in February 2018 following loan defaults by the group. During the insolvency resolution process, Dhoot proposed repaying Rs 600 crore over three years through a proposed real estate development project in Siliguri. The proposed amount was less than one per cent of the admitted claims. However, the resolution professional raised concerns over the proposal, citing its dependence on future project approvals, uncertain cash flows and the absence of any upfront payment. With the tribunal's order, the bankruptcy trustee will administer Dhoot's estate and oversee the distribution of available assets among creditors in accordance with the insolvency framework.