Mumbai: The National Company Law Tribunal (NCLT), Mumbai Bench, has declared former Videocon Industries promoter Venugopal Dhoot bankrupt in connection with defaults amounting to Rs 12,668 crore on credit facilities extended to the company by the State Bank of India (SBI).
The order, dated November 5, follows a petition filed by SBI under Section 123 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking initiation of bankruptcy proceedings against Dhoot in his capacity as a personal guarantor to the loans availed by Videocon Industries Ltd (VIL).
According to the bank’s application, the total outstanding default, including interest and penalties, stood at Rs 12,668 crore as of September 30, 2026.
The tribunal has appointed Asish Narayan, a professional registered with the Insolvency and Bankruptcy Board of India (IBBI), as the Bankruptcy Trustee to oversee the administration and distribution of Dhoot’s estate among his creditors.
As per the order, Dhoot’s estate will immediately vest in the Bankruptcy Trustee. The tribunal has also directed Dhoot to submit a statement of his financial position to the trustee in the prescribed format within seven days from the bankruptcy commencement date.
The trustee has been instructed to notify creditors within 10 days of the commencement of bankruptcy proceedings and issue a public notice inviting claims through leading English and vernacular newspapers with adequate circulation in the area where Dhoot resides.
The order also imposes statutory disqualifications and restrictions on Dhoot under Sections 140 and 141 of the IBC. These include disqualification from acting as a company director or participating, directly or indirectly, in the promotion, formation or management of any company.
Further, he cannot create any charge on his estate or incur additional debt without the prior sanction of the Bankruptcy Trustee. He will also be required to obtain permission from the adjudicating authority before travelling overseas and disclose his bankruptcy status to relevant persons and business associates.
The Bankruptcy Trustee has been directed to submit a preliminary report to the NCLT and the Committee of Creditors (CoC) within 90 days of the commencement of bankruptcy proceedings. The trustee must subsequently file quarterly progress reports within 15 days of the end of each quarter.
The final report will be submitted to the tribunal along with an application seeking a discharge order under Section 138 of the IBC.
Under the provision, the trustee may seek discharge after one year from the bankruptcy commencement date or within seven days of the CoC approving the completion of administration of the bankrupt’s estate.
