The financial collapse of Videocon Group has reached another critical stage, with the National Company Law Tribunal (NCLT) declaring its founder and promoter Venugopal Dhoot bankrupt over ₹12,668 crore in dues claimed by State Bank of India (SBI). The Mumbai bench issued the order on Thursday, November 5, following the failure of Dhoot’s personal insolvency resolution process.
The ruling marks a significant development in one of India's biggest corporate insolvency cases, nearly eight years after Videocon Industries entered insolvency proceedings.
The tribunal has appointed Asish Narayan as bankruptcy trustee and directed Dhoot to disclose his complete financial position within seven days. The trustee will invite claims from creditors and submit a preliminary report within 90 days. Dhoot’s bankruptcy estate will be administered by the trustee, who will oversee asset recovery and distribution among creditors under the Insolvency and Bankruptcy Code (IBC).
The bankruptcy order follows the rejection of Dhoot’s ₹600-crore repayment proposal, which offered to settle creditor dues over 36 months.
The proposed payments depended on revenue from a real-estate development project in Siliguri. However, creditors raised concerns about regulatory approvals, uncertain future cash flows and the absence of any upfront payment.
The NCLT rejected the proposal on July 17, 2026, paving the way for bankruptcy proceedings.
The dispute dates back to loans and working-capital facilities extended by SBI and other lenders to Videocon Industries and Videocon Telecommunications during 2010 and 2012.
Dhoot had provided personal guarantees for these borrowings. Following defaults by the companies, SBI invoked the guarantees in February 2018. SBI initially demanded approximately ₹6,157.57 crore in July 2020 and subsequently approached the NCLT.
The bank’s total claim of ₹12,668.06 crore comprises:
Rupee term loan facility: ₹9,322.10 crore
Videocon Telecommunications facility: ₹1,437.76 crore
Working-capital facilities: ₹1,908.19 crore
The amounts include interest and penalties.
On April 8, 2026, the NCLT admitted SBI’s application and initiated personal insolvency proceedings against Dhoot.
Videocon was once a household name in India’s consumer electronics market, particularly in televisions and home appliances.
The group subsequently diversified into telecommunications, oil and gas, and direct-to-home television, financing much of its expansion through borrowings.
Its financial troubles intensified after the Supreme Court cancelled 122 telecom licences in 2012, including those held by Videocon. Growing competition from international consumer electronics brands added further pressure.
In 2017, the Reserve Bank of India identified Videocon among 12 major corporate accounts requiring insolvency action. Videocon Industries entered corporate insolvency proceedings in June 2018.
Creditors eventually admitted claims of approximately ₹64,500 crore against the consolidated Videocon Group.
In 2021, the NCLT approved a ₹2,962-crore resolution plan submitted by Twin Star Technologies. However, the National Company Law Appellate Tribunal (NCLAT) overturned the approval in January 2022.
Twin Star challenged the decision before the Supreme Court, where the matter remains pending.
Dhoot’s bankruptcy highlights the financial risks promoters face when they personally guarantee corporate borrowings.
Under the IBC, lenders can pursue personal guarantors even when the borrowing companies are undergoing separate insolvency proceedings.
The development also underscores how debt-funded diversification, business setbacks and unsuccessful restructuring efforts can expose promoters to personal financial liability long after their companies run into trouble.