Videocon’s Venugopal Dhoot declared bankrupt over Rs 12,668-crore SBI loan default

The National Company Law Tribunal (NCLT) has declared Venugopal Nandlal Dhoot, former promoter and director of Videocon Industries, bankrupt over loan defaults amounting to Rs 12,668 crore owed to the State Bank of India (SBI).

In an order passed on Thursday, the Mumbai bench of the tribunal directed that Dhoot’s estate be vested in bankruptcy trustee Ashish Narayan for administration and distribution among creditors. The order follows the creditors’ rejection of a Rs 600-crore repayment proposal submitted by Dhoot.

The case arises from personal guarantees furnished by Dhoot for credit facilities extended to Videocon Industries Limited and Videocon Telecommunications Limited in 2010 and 2012. The companies had availed rupee term loans and working capital facilities from SBI and its associate banks, which were subsequently merged with the lender in April 2017. Dhoot had unconditionally guaranteed repayment of the loans and discharge of all related liabilities.

Videocon Industries defaulted on its loan obligations and was admitted to the Corporate Insolvency Resolution Process (CIRP) in June 2018. In August 2019, the NCLT consolidated its insolvency proceedings with those of 12 other Videocon group companies. Before the companies entered insolvency, SBI had issued demand notices to Dhoot in February 2018, seeking repayment under his personal guarantees.

In April 2026, SBI initiated a separate personal insolvency resolution process against Dhoot after he failed to submit a repayment plan for the outstanding dues. Two months later, Dhoot submitted a consolidated repayment proposal, accompanied by a Detailed Project Report for a proposed development project in Siliguri. He offered to repay Rs 600 crore over 36 months — just 0.42 per cent of the admitted claims, according to the petition.

The resolution professional, however, found the proposal heavily dependent on future project development, regulatory approvals and cash flows that could not be independently verified. The plan offered no upfront payment or assured realisation for creditors. Citing these uncertainties, the creditors decided to close the personal insolvency resolution process and initiate bankruptcy proceedings against Dhoot.

In July 2026, the NCLT rejected the repayment proposal and ordered the commencement of bankruptcy proceedings over defaults of Rs 12,668 crore, including interest and penalties, as claimed by SBI.

The tribunal has now directed Dhoot to furnish details of his financial position to the bankruptcy trustee. The trustee will issue a public notice inviting claims from creditors and oversee the administration and distribution of Dhoot’s estate in accordance with the Insolvency and Bankruptcy Code.