The National Company Law Tribunal (NCLT) in Mumbai has declared former Videocon Industries promoter Venugopal Nandlal Dhoot bankrupt over outstanding dues of Rs 12,668.06 crore to the State Bank of India (SBI), after creditors rejected his proposed repayment plan. The order marks the end of his personal insolvency resolution process and allows SBI to pursue bankruptcy proceedings against him as a personal guarantor for loans extended to Videocon group companies.
A bench comprising Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati passed the order on November 5, admitting SBI's bankruptcy petition under Section 123 of the Insolvency and Bankruptcy Code (IBC), 2016.
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"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 tribunal said in its order.
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The NCLT appointed insolvency professional Asish Narayan as the bankruptcy trustee and directed that Dhoot's estate vest in him immediately for administration and distribution among creditors.
The outstanding amount of Rs 12,668.06 crore, including interest and penalties, was calculated as of September 30, 2026, according to SBI's petition.
Loan Default
Dhoot had furnished personal guarantees for credit facilities extended to Videocon Industries by SBI and its erstwhile associate banks. These included rupee term loans, facilities originally extended to Videocon Telecommunications Ltd. (VTL) and working capital borrowings.
Following defaults, SBI invoked the personal guarantees through demand notices issued on February 2 and 20, 2018.
The outstanding dues comprise Rs 9,322.10 crore under the rupee term loan facility, Rs 1,437.76 crore under the VTL facility and Rs 1,908.19 crore under the working capital facility.
Videocon Industries was admitted to the corporate insolvency resolution process on June 6, 2018, following a petition filed by SBI. The proceedings were subsequently consolidated with those of 12 other Videocon group companies.
The NCLT approved Twin Star Technologies Ltd.'s resolution plan for the group on June 8, 2021. Dhoot challenged the approval before the National Company Law Appellate Tribunal, which dismissed his appeal on January 5, 2022.
Repayment Rejected
Separately, SBI initiated personal insolvency proceedings against Dhoot under Section 95 of the IBC. The NCLT admitted the application on April 8, 2026, and commenced his personal insolvency resolution process.
During the proceedings, Dhoot proposed a repayment plan offering Rs 600 crore over 36 months through a proposed real estate development project in Siliguri. The amount represented approximately 0.42% of the admitted dues, according to the tribunal order.
However, the resolution professional found that the plan had not been prepared in consultation with him, as required under Section 105 of the IBC. The proposed repayments also depended on future development, regulatory approvals and cash flows that could not be verified. The proposal did not provide for any upfront payment.
Creditors consequently declined to approve the plan.
On July 17, 2026, the NCLT rejected the proposal under Section 114 of the Code and terminated Dhoot's personal insolvency resolution process. It also allowed creditors to initiate bankruptcy proceedings under the IBC.
SBI subsequently filed the present bankruptcy petition on September 24, within the prescribed three-month period from the tribunal's order terminating the resolution process.
Trustee Appointed
The NCLT directed Dhoot to submit his statement of financial position to the bankruptcy trustee within seven days of the order.
Narayan must notify creditors within 10 days, issue a public notice inviting claims and administer and distribute Dhoot's estate among creditors in accordance with the IBC.
The trustee must also submit a preliminary report to the tribunal and the committee of creditors within 90 days of the bankruptcy commencement date. He will be required to file quarterly progress reports thereafter.
Advocates Srideepa Bhattacharyya, Ananya Bajpai and Aman Patidar of Cyril Amarchand Mangaldas appeared for SBI.
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