NCLT Mumbai Bench Declares Former Videocon Promoter Venugopal Dhoot Bankrupt

The National Company Law Tribunal (NCLT) Mumbai Bench has declared Venugopal Dhoot, the former promoter and director of Videocon Industries Ltd (VIL), bankrupt. The tribunal admitted a petition filed by the State Bank of India (SBI) under Section 123 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the bankruptcy process against Dhoot in his capacity as the personal guarantor for credit facilities availed by VIL.

According to the application submitted by the bank, the total amount in default, including interest and penalties, stood at Rs 12,668 crore as of September 30, 2026. Following the order, the NCLT has proposed Asish Narayan as the Bankruptcy Trustee. The bankruptcy commencement date is marked as November 5, 2026.

Per the tribunal's directives, Dhoot's estate will immediately vest in the Bankruptcy Trustee for division among creditors. The bankrupt is required to submit a statement of financial position to the trustee within seven days of the order. The Bankruptcy Trustee is tasked with issuing public notices in leading English and vernacular newspapers to invite claims from creditors and will send direct notices to creditors within 10 days.

The ruling triggers specific statutory disqualifications and restrictions under Sections 140 and 141 of the IBC. Under Section 140, Dhoot is disqualified from acting as a trustee or public servant, holding public office through election, or serving as a member of any local authority. Section 141 imposes further strictures, barring him from acting as a company director or participating in the promotion, formation, or management of any company. He is also prohibited from creating charges on his estate, taking on further debt without the Bankruptcy Trustee's sanction, or traveling overseas without permission from the Adjudicating Authority. Additionally, he must disclose his bankruptcy status to business partners and concerned individuals.

The NCLT order outlines a reporting timeline for the Bankruptcy Trustee, who must submit a preliminary report to the tribunal and the Committee of Creditors (CoC) within 90 days. Quarterly progress reports must follow within 15 days of the end of every quarter. The process will culminate with a final report and an application for a discharge order upon the expiry of one year or following the completion of the estate's administration.

"The NCLT order against Venugopal Dhoot underscores the strict enforcement of personal guarantees under the Insolvency and Bankruptcy Code for large corporate defaults. When promoters provide personal guarantees for corporate debt, their personal assets remain directly exposed during financial distress. This development highlights the legal framework's emphasis on accountability for personal guarantors when corporate loans default significantly, and it establishes critical governance benchmarks for business promoters regarding financial liabilities." — Dr. Shishir Gupta, Founder & CEO, StartupLanes