NCLT Declares Former Videocon Promoter Venugopal Dhoot Bankrupt Over SBI Dues

The Mumbai bench of the National Company Law Tribunal (NCLT) has declared former Videocon Industries promoter and director Venugopal Nandlal Dhoot as bankrupt. The decision comes after the tribunal admitted a petition filed by public sector lender State Bank of India (SBI) regarding dues amounting to Rs 12,668 crore.

As part of the order, the NCLT has appointed a Bankruptcy Trustee to oversee the process. The trustee has been directed to issue a public notice inviting claims from the creditors of Dhoot. According to the tribunal, the estate and property of the bankrupt individual will be divided among his creditors.

Dhoot has been instructed to submit his statement of financial position to the bankruptcy trustee within seven days from the commencement of the proceedings. Additionally, the bankruptcy trustee is required to submit a preliminary report to the tribunal and the Committee of Creditors within 90 days, followed by regular quarterly progress reports.

The proceedings stem from credit facilities previously availed by Videocon Industries Ltd and Videocon Telecommunications Ltd from SBI and its erstwhile associate banks, which were later merged with SBI in April 2017. These associate banks included the State Bank of Hyderabad, State Bank of Mysore, State Bank of Travancore, State Bank of Bikaner and Jaipur, and State Bank of Patiala. Dhoot had provided personal guarantees for these loan facilities.

Following defaults on these credit facilities, SBI invoked the personal guarantees through demand notices issued in February 2018. According to SBI's petition, the total defaulted amount—including interest and penalties—stood at Rs 12,668.06 crore as of September 30, 2026. This figure comprised Rs 9,322.10 crore under the rupee term loan facility, Rs 1,437.76 crore under the Videocon Telecommunications facility, and Rs 1,908.19 crore under the working capital facility.

The NCLT had earlier initiated a personal insolvency resolution process against Dhoot on April 8, 2026. During this process, Dhoot submitted a repayment plan offering Rs 600 crore over 36 months through a proposed development project in Siliguri, representing approximately 0.42 per cent of the admitted dues. However, the resolution professional reported that the proposal was contingent on future project approvals and cash flows with no upfront payment, and was not prepared in consultation with the resolution professional.

On July 17, the tribunal rejected the repayment plan and terminated the process, prompting SBI to file the bankruptcy petition on September 24 within the stipulated three-month limit. The NCLT bench, comprising Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati, noted that the petition complied with all statutory requirements under the Insolvency and Bankruptcy Code.

"This ruling highlights the strict legal framework surrounding personal guarantees given for corporate loans in India. When promoters provide personal guarantees, their personal assets remain tied to the debt obligations of the company. A repayment plan that relies heavily on future, unapproved project cash flows rather than concrete upfront settlements is unlikely to satisfy creditors or tribunals. This case reinforces the importance of financial accountability and adherence to formal debt resolution protocols under the Insolvency and Bankruptcy Code." — Dr. Shishir Gupta, Founder & CEO, StartupLanes