Former Videocon Promoter Venugopal Dhoot Declared Bankrupt by NCLT
NCLT's Ruling on Venugopal Dhoot
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New Delhi, Nov 6: The National Company Law Tribunal (NCLT) has officially declared Venugopal Nandlal Dhoot, the former promoter of Videocon Industries, as bankrupt. This decision comes after the State Bank of India (SBI) filed a petition to recover over Rs 12,668 crore linked to personal guarantees he provided for loans to Videocon group companies.
A bench in Mumbai accepted SBI's petition under Section 123 of the Insolvency and Bankruptcy Code (IBC), initiating bankruptcy proceedings against Dhoot as a personal guarantor.
This ruling follows the unsuccessful personal insolvency resolution process, where creditors rejected Dhoot's proposed repayment plan.
The tribunal has appointed Asish Narayan as the bankruptcy trustee, who will manage Dhoot's estate and oversee the distribution of assets to creditors.
As per the public sector bank, Dhoot's total liabilities amount to Rs 12,668.06 crore, which includes interest and penalties as of September 30.
The debts stem from personal guarantees Dhoot provided for various loans, including term loans and working capital for Videocon Group entities, such as Videocon Telecommunications Ltd.
The guarantees were invoked by SBI in February 2018 after the group defaulted on its loans.
During the insolvency proceedings, Dhoot suggested a repayment plan that involved Rs 600 crore over three years, funded by a proposed real estate project in Siliguri. However, this amount was less than 1% of the total claims acknowledged.
Concerns were raised by the resolution professional regarding the viability of the proposal, citing its reliance on future project approvals and uncertain cash flows, with no immediate payment offered.
The tribunal concluded the insolvency resolution process in July of this year, allowing creditors to pursue bankruptcy proceedings.
SBI subsequently filed its bankruptcy petition within the designated timeframe.
Additionally, the bankruptcy trustee has been instructed to solicit claims from creditors, take control of Dhoot's estate, and present a preliminary report to the tribunal within 90 days.