Home / Business and Economy / Videocon Founder Declared Bankrupt by NCLT
Videocon Founder Declared Bankrupt by NCLT
6 Nov
Summary
- Former Videocon promoter Venugopal Dhoot declared bankrupt.
- SBI filed the petition over Rs 12,668 crore in outstanding dues.
- Dhoot's Rs 600 crore repayment plan was rejected by creditors.
Former Videocon Industries promoter Venugopal Dhoot has been declared bankrupt by the Mumbai bench of the National Company Law Tribunal (NCLT). This declaration came after the State Bank of India (SBI) filed a petition concerning outstanding dues totaling Rs 12,668 crore.
The NCLT's order on Thursday, November 5, followed the rejection of Dhoot's Rs 600 crore repayment proposal in July. Creditors had declined to approve this plan. The tribunal found that SBI's petition met all statutory requirements.
Proceedings originated from personal guarantees Dhoot provided for loans to Videocon Industries and Videocon Telecommunications. After defaults, SBI invoked these guarantees, leading to corporate insolvency proceedings for Videocon Industries in June 2018.
Dhoot's repayment plan, intended to be funded by a real estate project, was rejected as it lacked consultation with the resolution professional and depended on unverified future income. The NCLT terminated his personal insolvency process, allowing creditors to pursue bankruptcy.
Asish Narayan has been appointed as the bankruptcy trustee. Dhoot's estate will be managed and distributed among creditors.
