Suryaa Business Desk: The Mumbai bench of the National Company Law Tribunal has declared Venugopal Nandlal Dhoot, the former promoter of electronics and telecom products company Videocon Industries, bankrupt. The tribunal delivered the judgment in a recovery case involving defaulted debts of Rs 12,668 crore owed to a consortium of banks led by the State Bank of India. The bench, comprising Judges Vinay Goyal and Charanjeet Singh Gulati, issued the order under Section 126 of the Insolvency and Bankruptcy Code as part of measures against corporate promoters who provided personal guarantees for company loans.
Venugopal Dhoot had provided personal guarantees for large loans taken by Videocon Industries and Videocon Telecommunications Limited. After these loans turned into bad debts, the tribunal initiated personal insolvency resolution proceedings against Dhoot following a petition filed by SBI. Against the total default claim of Rs 12,668 crore, Dhoot submitted a repayment plan offering to pay back Rs 600 crore through real estate projects. However, the committee of creditors rejected the proposal, with banks stating that the plan relied on vague terms and future cash flows, leading to the failure of the resolution process.
Following the request of the lenders, the tribunal directed that Dhoot's personal assets and estate be transferred under the control of an official bankruptcy trustee. Dhoot has been ordered to submit full details of his financial status, movable and immovable assets, and liabilities to the trustee within seven days. Furthermore, the tribunal directed the bankruptcy trustee to issue a public notice to receive claims from other creditors and submit a preliminary report to the tribunal within 90 days. Banking experts analyze that the ruling serves as a strong warning to large industrialists who act as guarantors for corporate loans and attempt to evade liability.