NCLT declares Videocon's Venugopal Dhoot as bankrupt over ₹12,668-crore SBI default

The Mumbai bench of the National Company Law Tribunal (NCLT) has declared the former Videocon Industries promoter and director Venugopal Nandlal Dhoot as "Bankrupt", admitting the petition filed by public sector lender State Bank of India over default of ₹12,668 crore.

The Mumbai bench of NCLT has also appointed a Bankruptcy Trustee to conduct the bankruptcy process against Dhoot, who had given personal guarantees for loan facilities availed by Videocon Industries from SBI and its erstwhile associate banks, which were merged with the leading bank.

"Venugopal Nandlal Dhoot, the Personal Guarantor herein, is declared as Bankrupt," said an order passed by a two-member bench of NCLT on Thursday.

NCLT had directed the Bankruptcy Trustee to issue a Public Notice inviting claims from the creditors of Dhoot and said the "estate (property) of the bankrupt (Dhoot) shall be divided among his creditors."

Dhoot has been directed to submit his statement of financial position to the bankruptcy trustee within seven days from the commencement of the bankruptcy proceedings.

"The Bankrupt (Dhoot) shall submit his statement of financial position to the Bankruptcy Trustee in the prescribed form within seven days from the date of this order, i.e. the bankruptcy commencement date," it said.

Moreover, the bankruptcy trustee will also submit a preliminary report to the tribunal and the Committee of Creditors within 90 days, followed by quarterly progress reports, said the bench comprising Member (Judicial) Vinay Goel and Member (Technical) Charanjeet Singh Gulati.

These bankruptcy proceedings against Dhoot "shall continue to have effect till the debtor is discharged under Section 138 of the Code," NCLT said in its 12-page order.

The matter pertains to Videocon Industries Ltd (VIL), which had availed credit facilities from SBI and its erstwhile associates - State Bank of Hyderabad, State Bank of Mysore, State Bank of Travancore, State Bank of Bikaner and Jaipur and State Bank of Patiala. In this, a certain amount was also availed by Videocon Telecommunications Ltd (VTL) as a co-obligor.

However, it defaulted, and according to the SBI petition, the total amount defaulted, including interest and penalties, was ₹12,668.06 crore as on September 30, 2026.

This comprises ₹9,322.10 crore under the rupee term loan facility, ₹1,437.76 crore under the VTL facility and ₹1,908.19 crore under the working capital facility.

Dhoot had given personal guarantees for facilities availed by Videocon Industries from SBI and its erstwhile associate banks, which were merged with SBI in April 2017. SBI invoked the guarantees through demand notices in February 2018.

The NCLT has already initiated the personal insolvency resolution process against Dhoot on April 8, 2026. During the personal insolvency resolution process, Dhoot submitted a repayment plan on June 16, 2026, offering ₹600 crore over 36 months through a proposed development project in Siliguri, which was just 0.42% of the admitted dues.

However, the resolution professional found the proposal contingent on future project approvals and cash flows, with no upfront payment. He reported that the plan was not prepared in consultation with him as required under Section 105 of the Code and was contingent on future development, approvals and cash flows.

On July 17, the tribunal rejected the plan under Section 114 and terminated the process. Following this, SBI filed the bankruptcy petition on September 24, within the three-month limit under Section 121(2).

Admitting the bankruptcy plea, NCLT said: "We are satisfied that the Petition complies with all the requirements prescribed in Section 123 of the Code. Therefore, we consider it proper to admit this Petition."

The NCLT order, which records no appearance for Dhoot, has directed the Bankruptcy Trustee to "submit to this Adjudicating Authority (NCLT) and the Committee of Creditors (CoC) a preliminary report within 90 days of the bankruptcy commencement date.”