The tribunal has appointed a bankruptcy trustee to manage Dhoot’s estate after creditors rejected his ₹600 crore repayment proposal, citing uncertainty over future cash flows.
Highlights
- NCLT’s Mumbai bench has declared former Videocon promoter Venugopal Dhoot bankrupt.
- The case involves ₹12,668 crore in outstanding SBI loans, including interest and penalties.
- Creditors rejected Dhoot’s ₹600 crore repayment proposal spread over 36 months.
- The loans were backed by personal guarantees provided between 2010 and 2012.
- Bankruptcy trustee Ashish Narayan will oversee the administration and distribution of Dhoot’s estate.
- Dhoot has been directed to disclose his financial position to the bankruptcy trustee.
Videocon’s Venugopal Dhoot Declared Bankrupt Over ₹12,668 Crore SBI Loan Default
New Delhi, November 7: The National Company Law Tribunal (NCLT) has declared Venugopal Nandlal Dhoot, former promoter and director of Videocon Industries, bankrupt in connection with a ₹12,668 crore loan default involving the State Bank of India (SBI). The decision marks another major development in the long-running insolvency proceedings involving the Videocon Group.
The Mumbai bench of the tribunal, in an order passed on Thursday, directed that Dhoot’s estate be vested in bankruptcy trustee Ashish Narayan. The trustee will administer the estate and distribute the proceeds among creditors in accordance with the Insolvency and Bankruptcy Code (IBC).
How Did the ₹12,668 Crore Default Happen?
The dispute dates back to loans obtained by Videocon Industries Limited and Videocon Telecommunications Limited between 2010 and 2012. The companies secured term loans and working capital facilities from SBI and its associate banks.
Dhoot had provided personal guarantees for these credit facilities, making him personally liable for repayment obligations covered by those guarantees.
However, Videocon Industries subsequently defaulted on its loans and entered the Corporate Insolvency Resolution Process (CIRP) in June 2018. In August 2019, the insolvency proceedings were consolidated with those of 12 other Videocon Group companies.
SBI had already issued demand notices to Dhoot in February 2018, seeking repayment of outstanding dues.
Why Was the ₹600 Crore Repayment Plan Rejected?
In April 2026, SBI initiated personal insolvency proceedings against Dhoot. He subsequently submitted a combined repayment proposal offering ₹600 crore over 36 months.
The proposal relied on a planned real estate development project in Siliguri. However, the resolution professional raised concerns about its dependence on future approvals, development activities and uncertain cash flows.
Creditors rejected the proposal because it offered no immediate repayment and lacked sufficient certainty regarding recovery.
In July 2026, the NCLT rejected the repayment plan and initiated bankruptcy proceedings.
What Happens Next?
Following the bankruptcy declaration, Dhoot must provide details of his financial position to the appointed trustee.
The trustee will issue a public notice inviting claims from creditors and oversee the administration and distribution of the bankruptcy estate under the IBC.
The proceedings will determine how much creditors can recover from Dhoot’s available estate. However, the bankruptcy declaration does not automatically mean that the entire ₹12,668 crore outstanding amount will be recovered.
