Former Videocon promoter Venugopal Dhoot declared bankrupt:NCLT issues order on SBI petition; action over ₹12,668 crore loan default

The Mumbai Bench of the National Company Law Tribunal (NCLT) has declared Venugopal Nandlal Dhoot, former promoter and director of Videocon Industries, bankrupt. The tribunal issued the order while hearing a petition filed by the State Bank of India (SBI). The step was taken after the personal insolvency resolution process and repayment plan for Dhoot failed. The bench of Vinay Goyal and Charanjit Singh Gulati passed the bankruptcy order under the Insolvency and Bankruptcy Code (IBC) on 5 November. Details of Personal Guarantee and Dues The NCLT noted that SBI had initiated bankruptcy proceedings against Dhoot in his capacity as the personal guarantor for the credit facilities taken by Videocon Industries Limited (VIL) from the bank. Dhoot had provided personal guarantees for several credit facilities extended to the company, including a rupee term loan, facilities linked to Videocon Telecommunications Limited and working capital loans. The bank invoked these guarantees in February 2018. The claims included in the bank’s demand notice are as follows… Videocon’s Insolvency Background Videocon Industries was admitted into the corporate insolvency resolution process in June 2018. The proceedings were later consolidated with those involving other companies in the Videocon Group. Subsequently, in June 2021, the NCLT approved the resolution plan submitted by Twin Star Technologies Limited. Why Was the Repayment Plan Rejected? Venugopal Dhoot’s personal insolvency resolution process was initiated in April 2026. However, the creditors did not approve his proposed repayment plan. Dhoot had proposed paying ₹600 crore over 36 months through a proposed development project in Siliguri. The tribunal found that the proposal depended on future development, approvals and cash flow, and did not include any upfront payment. In addition, the resolution professional said the repayment plan had not been prepared in consultation with him, as required under the IBC rules. Subsequently, the creditors decided to close the personal insolvency process and initiate bankruptcy proceedings. Earlier, on 17 July, the NCLT had rejected the repayment plan, ended the personal insolvency process and permitted the creditors and the debtor to initiate bankruptcy proceedings under the IBC rules. Total default amount reaches ₹12,668 crore Following this, SBI filed a bankruptcy petition. The bank said that, including interest and penalties, the total default amount had reached ₹12,668 crore as of 30 September 2026. After examining the documents, the tribunal found that the petition met all the requirements under Section 123 of the IBC and admitted it. Appointment of trustee and further process Order to submit report within 90 days The bankruptcy trustee has been ordered to inform the creditors, issue a public notice inviting claims and submit an initial report to the NCLT and the Committee of Creditors within 90 days. This order will remain in effect until Dhut’s discharge under Section 138 of the IBC. What are bankruptcy and personal guarantees? Personal guarantee: When an individual guarantees a company’s loan with their personal assets, the bank can recover the outstanding amount directly from that person if the loan is not repaid. Bankruptcy: Under the Insolvency and Bankruptcy Code (IBC), when a debtor is unable to repay their debt, the court declares them bankrupt. After this, all their assets are transferred to a court-appointed trustee, who sells them and returns the money to creditors.