Venugopal Nandlal Dhoot, the promoter of Videocon Industries, was declared “bankrupt” by the National Company Law Tribunal (NCLT) on 5 November.

Once the native king of the consumer-electronics business in India, Dhoot defaulted over dues of Rs 12,668 crore claimed by the State Bank of India (SBI). He had extended personal guarantees for credit facilities availed of by the Videocon group.

“Venugopal Nandlal Dhoot, the personal guarantor herein, is declared as bankrupt,” the Mumbai bench of the NCLT said in its order on Thursday.

Dhoot will now have to submit details of his financial position within seven days as the bankruptcy proceedings against him start.

The tribunal has directed that the "estate (property) of the bankrupt (Dhoot) shall be divided among his creditors".

The bankruptcy trustee will administer the assets and distribute the recoveries among creditors in accordance with the Insolvency and Bankruptcy Code (IBC).

The bankruptcy trustee under Asish Narayan, who was appointed by the tribunal, will invite claims from creditors and submit a preliminary report within 90 days. This will be followed by quarterly progress reports, said the bench comprising Member (Judicial) Vinay Goel and Member (Technical) Charanjeet Singh Gulati.

These bankruptcy proceedings against Dhoot "shall continue to have effect till the debtor is discharged under Section 138 of the Code," the NCLT said in its 12-page order.

The order follows the failure of Dhoot's personal insolvency resolution process, after creditors rejected his proposed repayment plan of Rs 600 crore.

The personal insolvency process began on 8 April after the NCLT Mumbai admitted SBI’s plea against Dhoot. 

The state-run lender had invoked Dhoot's personal guarantees for loans taken by Videocon Industries and Videocon Telecommunications. 

Failure of Rs 600-crore repayment plan

The bankruptcy proceedings followed the failure of a Rs 600-crore repayment plan proposed by Dhoot during his personal insolvency resolution process.

The plan, submitted on 16 June 2026, offered payment to the creditors over 36 months using money from a real-estate development project in Siliguri, which was just 0.42% of the admitted dues.

The resolution professional, however, rejected the proposal as it was dependent on future project approvals and cash flows, with no upfront payment. It relied on the successful development and monetisation of the project for repayment.

On 17 July, the tribunal rejected the repayment plan under Section 114 and terminated Dhoot’s personal insolvency resolution process, allowing creditors to initiate bankruptcy proceedings.

On 24 September, SBI filed the bankruptcy petition, within the three-month limit under Section 121(2).

Admitting the bankruptcy plea, NCLT said: "We are satisfied that the petition complies with all the requirements prescribed in Section 123 of the Code.

"Therefore, we consider it proper to admit this petition."

Background of the bankruptcy proceedings

Dating  back to 2010 and 2012, Videocon Industries and Videocon Telecommunications took loan and working-capital facilities from SBI and its erstwhile associates (including State Bank of Hyderabad, State Bank of Mysore, State Bank of Travancore, State Bank of Patiala and State Bank of Bikaner and Jaipur), with Dhoot, as promoter, furnishing personal guarantees.

With the Videocon companies defaulting, SBI invoked Dhoot’s personal guarantees in February 2018 through demand notices. Videocon Industries was later admitted into corporate insolvency proceedings on 6 June 2018.

On 23 July 2020, SBI issued a demand notice to Dhoot seeking about Rs 6,157.57 crore. But the amount remained unpaid and in September that year SBI filed an application before the NCLT Mumbai under Section 95 of the IBC to initiate insolvency proceedings against Dhoot.

SBI claimed Rs 12,668.06 crore as on 30 September 2026, including Rs 9,322.10 crore from the rupee term loan (RTL) facility, Rs 1,437.76 crore from the Videocon Telecommunications Ltd (VTL) facility and Rs 1,908.19 crore from working-capital facilities, including interest and penalties.

Dhoot challenged the proceedings, but the NCLT rejected the objections.

On 8 April 2026, the NCLT admitted SBI’s application and initiated Dhoot’s personal insolvency resolution process. 

How Dhoot’s Videocon collapsed

Dhoot’s problems started when he led the Videocon group to expand into telecom, oil and gas, direct-to-home (DTH) and other businesses, relying heavily on debt.

While the telecom business ran into crisis when the Supreme Court cancelled 122 telecom licences in 2012, including Videocon’s, the core consumer-electronics brand faced fierce competition from global companies.

In 2017, the Reserve Bank of India (RBI) identified the first 12 large corporate accounts for insolvency action under the IBC, including Videocon. 

In June 2018, Videocon Industries entered insolvency and was subsequently consolidated with its other group companies.

Creditors admitted claims of around Rs 64,500 crore against the consolidated group. In 2021, the NCLT approved a Rs 2,962-crore resolution plan submitted by Twin Star Technologies.

The resolution plan was challenged before the NCLAT (National Company Law Appellate Tribunal), which set aside its approval in January 2022. 

Twin Star then moved the Supreme Court, which has maintained status quo on the insolvency proceedings since February 2022, and the challenge remains pending.