The Mumbai bench of the National Company Law Tribunal (NCLT) has reportedly declared Venugopal Nandlal Dhoot, former promoter of Videocon Industries, bankrupt following proceedings initiated by the State Bank of India (SBI) over outstanding liabilities of approximately ₹12,668 crore.
The order, delivered on Thursday under Section 126 of the Insolvency and Bankruptcy Code (IBC), 2016, relates to personal guarantees provided by Dhoot to secure credit facilities extended to Videocon Industries and Videocon Telecommunications Limited.
The decision moves the matter into formal bankruptcy administration, placing Dhoot's personal estate under the supervision of a court-appointed bankruptcy trustee for the purposes of asset administration and creditor claims.
NCLT Appoints Bankruptcy Trustee to Administer Assets
The two-member NCLT bench comprised Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati. According to the supplied report, the tribunal found that SBI's application satisfied the statutory requirements under Section 123 of the IBC.
The tribunal appointed Ashish Narayan as bankruptcy trustee and directed that Dhoot's assets vest in the trustee in accordance with the bankruptcy framework.
The trustee will be responsible for administering the estate and distributing the proceeds among eligible creditors under applicable legal provisions.
Dhoot has reportedly been directed to submit a comprehensive statement of his financial affairs to the trustee within seven days. The trustee is also expected to invite claims from financial creditors and submit a preliminary report within 90 days.
These steps are intended to establish the assets and liabilities forming part of the bankruptcy estate and provide a structured process for creditor claims.
Bankruptcy Linked to Personal Guarantees for Videocon Loans
The proceedings originate from personal guarantees executed by Dhoot in support of term loans and working capital facilities extended to Videocon group companies by SBI and its erstwhile associate banks.
After the companies defaulted on their repayment obligations, lenders reportedly invoked the personal guarantees in February 2018 and demanded settlement of the outstanding amounts.
Videocon Industries subsequently entered the corporate insolvency resolution process in June 2018. The proceedings were later consolidated with insolvency cases involving 12 other group entities.
The personal bankruptcy case against Dhoot is separate from the corporate insolvency proceedings involving the Videocon companies. It concerns the liabilities arising from the personal guarantees provided by the former promoter.
₹600 Crore Repayment Proposal Rejected
SBI initiated separate personal insolvency proceedings to recover the outstanding dues from Dhoot.
On April 8, 2026, the NCLT admitted the bank's application and ordered the commencement of a personal insolvency resolution process.
During the proceedings, Dhoot reportedly proposed a repayment plan offering ₹600 crore over 36 months. The proposed funds were expected to come from a real estate development project in Siliguri, West Bengal.
However, the resolution professional identified procedural and financial concerns with the proposal.
According to the supplied report, the plan had not been prepared in consultation with the resolution professional as required under the applicable insolvency framework. Its implementation also depended on several uncertain factors, including:
Execution of the proposed real estate project.
Receipt of necessary regulatory clearances.
Generation of projected cash flows.
Availability of funds for repayment without an upfront cash component.
The committee of creditors rejected the proposal. Subsequently, on July 17, the tribunal reportedly dismissed the repayment plan, closed the personal insolvency resolution process and allowed lenders to pursue formal bankruptcy proceedings.
SBI Claims Outstanding Liability of ₹12,668.06 Crore
Following the tribunal's permission, SBI filed a formal bankruptcy application against Dhoot.
The bank claimed outstanding liabilities of ₹12,668.06 crore as of September 30, 2026. The amount reportedly includes accumulated interest and penal charges associated with the guaranteed credit facilities.
The NCLT observed that the application met the applicable statutory requirements and had been filed within the prescribed three-month limitation period following the termination of the personal insolvency resolution process.
The bankruptcy order marks a significant stage in SBI's recovery efforts against the former Videocon promoter. The administration of Dhoot's personal estate will now proceed under the statutory bankruptcy framework, with the trustee responsible for examining assets and handling creditor claims.
What the Bankruptcy Order Means for Creditors
The bankruptcy process provides a formal mechanism for identifying the debtor's assets, inviting creditor claims and distributing realizable proceeds according to the priority rules under the IBC.
The appointment of a bankruptcy trustee shifts the administration of the estate into a regulated legal process. The eventual recovery for creditors will depend on the assets identified, their realizable value and the claims admitted during the proceedings.
The case also highlights the financial implications of personal guarantees provided by promoters for large corporate borrowings. Shunyatax's strategic advisory services provide information on financial and business-related advisory matters.
The reported order concerns Dhoot's personal bankruptcy proceedings arising from the guarantees. The ₹12,668.06 crore figure represents SBI's claimed liability, not a confirmed amount recovered through the bankruptcy process.