State Bank of India Wins Bankruptcy Ruling Against Former Videocon Head Venugopal Dhoot Over Rs 12,688 Crore Dues

The Mumbai bench of the National Company Law Tribunal has declared former Videocon Industries promoter and director Venugopal Nandlal Dhoot bankrupt over unpaid dues totaling ₹12,668.06 crore to the State Bank of India and its erstwhile associate banks. The tribunal admitted a bankruptcy petition filed by the public sector lender and appointed Ashish Narayan as the bankruptcy trustee to manage the process.

Bankruptcy Process

Dhoot must now submit his formal statement of financial position to the bankruptcy trustee within seven days from the commencement of the order. The trustee is required to issue a public notice inviting claims from all creditors and will submit a preliminary report to the tribunal and the Committee of Creditors within 90 days, followed by regular quarterly progress reports. The overall bankruptcy proceedings will remain active until Dhoot receives an official discharge under Section 138 of the Insolvency and Bankruptcy Code.

Background

The case stems from personal guarantees that Dhoot provided for credit facilities availed by Videocon Industries and Videocon Telecommunications Limited during 2010 and 2012. After the companies defaulted, Videocon Industries entered the corporate insolvency resolution process in June 2018. State Bank of India invoked Dhoot's personal guarantees through demand notices in February 2018, later initiating a personal insolvency resolution process in April 2026.

Rejected Repayment Plan

During the personal insolvency proceedings, Dhoot submitted a repayment plan offering ₹600 crore over 36 months through a proposed real estate development project in Siliguri. This offered amount represented just 0.42 per cent of the total admitted dues. The resolution professional and creditors rejected the plan because it lacked upfront payments and relied entirely on unverified future cash flows and project approvals. The tribunal formally rejected the repayment plan in July and terminated that process, paving the way for SBI to file the bankruptcy petition.

Context

Personal guarantees allow lenders to pursue the personal assets of business promoters when corporate borrowers default on heavy loans. Tribunals oversee these bankruptcy proceedings to ensure fair asset recovery and distribution among all verified creditors.