The National Company Law Tribunal (NCLT), Mumbai bench, has declared former Videocon Industries promoter and director Venugopal Nandlal Dhoot bankrupt after admitting a petition filed by State Bank of India (SBI) over outstanding dues of ₹12,668.06 crore. The order, passed on November 5, 2026, marks a significant development in the long-running insolvency proceedings linked to the Videocon Group and Dhoot’s personal guarantees for loans taken by the company.
The tribunal has appointed Asish Narayan as the bankruptcy trustee and directed Dhoot to submit his complete financial position within seven days. The decision follows the failure of a proposed ₹600 crore repayment plan that depended on a real-estate development project in Siliguri. With the bankruptcy process now underway, Dhoot’s estate will be administered by the trustee, who will invite creditor claims and oversee the distribution of available assets in accordance with the Insolvency and Bankruptcy Code (IBC).
NCLT Declares Venugopal Dhoot Bankrupt Over SBI’s ₹12,668 Crore Claim
The Mumbai bench of the NCLT admitted SBI’s bankruptcy petition against Dhoot under the provisions of the Insolvency and Bankruptcy Code, 2016.
The lender’s claim stood at ₹12,668.06 crore, including interest and penalties, as of September 30, 2026. The amount relates to credit facilities extended to Videocon Industries and Videocon Telecommunications by SBI and its erstwhile associate banks, which were subsequently merged with SBI.
Dhoot had provided personal guarantees for these loans. When the companies defaulted, SBI invoked the guarantees through demand notices issued in February 2018.
The NCLT order declared Dhoot bankrupt in his capacity as a personal guarantor. It also directed that his bankruptcy estate immediately vest in the appointed trustee for administration and distribution among creditors.
Breakdown of SBI’s ₹12,668 crore claim
| Loan category | Outstanding amount |
|---|---|
| Rupee term loan facilities | ₹9,322.10 crore |
| Videocon Telecommunications facility | ₹1,437.76 crore |
| Working capital facilities | ₹1,908.19 crore |
| Total dues | ₹12,668.06 crore |
The figures include interest and penalties reported in SBI’s petition as of September 30, 2026.
Why Was Venugopal Dhoot Declared Bankrupt?
The bankruptcy order follows the collapse of Dhoot’s personal insolvency resolution process.
SBI had pursued Dhoot because of the personal guarantees he provided for loans taken by Videocon Industries and its associated businesses. After the companies defaulted, the lender sought recovery from him as a guarantor.
On April 8, 2026, the NCLT initiated personal insolvency resolution proceedings against Dhoot.
During the process, Dhoot submitted a repayment proposal on June 16, offering creditors ₹600 crore over 36 months. The money was expected to come from a proposed real-estate development project in Siliguri, West Bengal.
However, the resolution professional raised concerns about the proposal’s feasibility.
The plan depended on future construction, regulatory approvals and projected cash flows. It did not offer any immediate upfront payment, and the resolution professional reported that it had not been prepared in consultation with him as required under the IBC.
The proposed ₹600 crore represented approximately 0.42% of the admitted dues.
The NCLT rejected the repayment plan on July 17, 2026, and terminated the personal insolvency resolution process. This allowed creditors to pursue bankruptcy proceedings.
SBI subsequently filed its bankruptcy petition on September 24, 2026, within the prescribed statutory period.
What Happens to Dhoot’s Assets After the Bankruptcy Order?
The NCLT has appointed Asish Narayan as the bankruptcy trustee responsible for administering Dhoot’s bankruptcy estate.
Under the order, the trustee will take control of the estate and manage the process of identifying, administering and distributing assets among eligible creditors.
The tribunal has issued several directions to ensure that the proceedings move forward.
Key directions issued by the NCLT
| Direction | Timeline |
|---|---|
| Submit statement of financial position | Within 7 days |
| Bankruptcy trustee to invite creditor claims | Through a public notice |
| Preliminary report to NCLT and Committee of Creditors | Within 90 days |
| Progress reports | Quarterly |
| Administration of bankruptcy estate | Under the IBC |
Dhoot is required to submit a prescribed statement detailing his financial position within seven days of the bankruptcy commencement date.
The trustee must issue a public notice inviting claims from creditors and submit a preliminary report to the NCLT and the Committee of Creditors within 90 days.
The proceedings will continue until Dhoot receives a discharge under Section 138 of the Insolvency and Bankruptcy Code.
This does not mean that the entire ₹12,668 crore will automatically be recovered. Actual recovery will depend on the assets available in the bankruptcy estate, the claims admitted by the trustee and the distribution process under the law.
How Videocon’s Debt Crisis Led to Personal Bankruptcy
The latest development is connected to the wider financial collapse of the Videocon Group, which once operated across consumer electronics, telecommunications, oil and gas, and other businesses.
Videocon Industries and Videocon Telecommunications obtained multiple loan facilities from SBI and its associate banks during 2010 and 2012. Dhoot provided personal guarantees for these borrowings.
The group’s financial position deteriorated as its businesses faced mounting debt and operational challenges.
Videocon Industries entered the corporate insolvency resolution process in June 2018. The proceedings were later consolidated with those involving 12 other Videocon Group companies in August 2019.
SBI separately pursued Dhoot under the personal guarantee arrangements.
The company’s corporate insolvency and Dhoot’s personal bankruptcy are legally distinct processes. The latest order concerns Dhoot’s personal estate and does not itself constitute a new bankruptcy declaration against the corporate entity.
The Bigger Picture
Dhoot’s bankruptcy highlights how personal guarantees can expose company promoters to substantial financial liability when businesses default on large loans. Even after a company’s insolvency proceedings begin, lenders can pursue individuals who have personally guaranteed the underlying credit facilities, subject to the applicable legal framework.
The case also demonstrates the importance of viable repayment proposals in personal insolvency proceedings. Dhoot’s proposed ₹600 crore settlement depended on future project approvals and uncertain cash flows, while creditors were being asked to wait 36 months without an upfront payment. The rejection of the proposal moved the matter from a potential repayment arrangement into formal bankruptcy proceedings.
Looking Ahead
The immediate focus will be on the bankruptcy trustee’s assessment of Dhoot’s financial position, the identification of assets and the submission of creditor claims. The seven-day disclosure requirement and the 90-day preliminary report will provide important information about the estate and the expected administration process. SBI and other creditors will seek recoveries through the statutory distribution mechanism, although the final amount recovered will depend on the assets available.
The case is also significant for India’s banking and insolvency framework because it demonstrates how lenders can pursue personal guarantors independently of corporate insolvency proceedings. For the Videocon Group’s former promoter, the bankruptcy order marks a new phase in the long-running debt dispute. The eventual outcome will depend on the trustee’s findings, creditor claims and the legal process governing the distribution and discharge of the bankruptcy estate.
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