NCLT declares Venugopal Dhoot bankrupt on SBI plea over Rs 12,668 crore dues

• The NCLT has declared former Videocon promoter Venugopal Dhoot bankrupt following an SBI petition over dues of Rs 12,668.06 crore

• The order follows creditors’ rejection of a repayment proposal offering Rs 600 crore over three years through a proposed property project

• Bankruptcy trustee Asish Narayan will administer Dhoot’s estate, invite creditors’ claims and submit a preliminary report within 90 days

The National Company Law Tribunal has declared former Videocon Industries promoter Venugopal Nandlal Dhoot bankrupt after admitting State Bank of India’s petition over outstanding dues exceeding Rs 12,668 crore linked to personal guarantees for Videocon group borrowings.

The tribunal’s Mumbai bench admitted the petition under Section 123 of the Insolvency and Bankruptcy Code after Dhoot’s personal insolvency resolution process failed to produce a repayment plan acceptable to creditors.

The order initiates bankruptcy proceedings against Dhoot as a personal guarantor. It does not establish how much SBI will ultimately recover.

The tribunal appointed insolvency professional Asish Narayan as bankruptcy trustee and ordered that Dhoot’s estate vest in him for administration and distribution among creditors.

According to SBI, Dhoot’s outstanding liabilities, including interest and penalties, amounted to Rs 12,668.06 crore as of 30 September.

The claims arise from guarantees he furnished for term loans, working capital facilities and other borrowings extended to Videocon group companies, including Videocon Telecommunications Ltd. SBI invoked those guarantees in February 2018 after the group defaulted on its loans.

During the personal insolvency proceedings, Dhoot submitted a repayment proposal offering Rs 600 crore over three years. The proposed payments depended on a planned real estate development in Siliguri.

The resolution professional raised concerns about the proposal’s viability, pointing to its reliance on future project approvals and uncertain cash flows. The plan also offered no upfront payment.

Creditors subsequently rejected the proposal, leaving the insolvency resolution process without an approved repayment arrangement.

In July, the tribunal terminated that process and permitted creditors to pursue bankruptcy proceedings. SBI then filed its petition within the prescribed period.

Under the latest order, Narayan must invite claims from creditors and take control of Dhoot’s estate. He has also been directed to submit a preliminary report to the tribunal within 90 days.

With IANS inputs