The Mumbai bench of the NCLT has officially declared former Videocon Industries promoter Venugopal Dhoot bankrupt following a petition by the State Bank of India. The ruling mandates the liquidation of Dhoot’s personal assets to recover unpaid guarantees totaling Rs 12,668 crore. A bankruptcy trustee has been appointed to oversee the asset seizure, marking a major development in the ongoing debt recovery process.
The Mumbai bench of the National Company Law Tribunal (NCLT) has officially declared Venugopal Dhoot, the former promoter of Videocon Industries, bankrupt. The tribunal issued this order on November 5, 2026, following a persistent legal battle initiated by the State Bank of India. The core of this legal action involves Dhoot’s failure to honor personal guarantees he provided for loans extended to Videocon Industries and its various subsidiaries.
The total liability recognized by the tribunal is Rs 12,668.06 crore as of September 30, 2026. These debts, which include rupee term loans and working capital facilities, were combined after several banks merged into the State Bank of India in 2017. As the loans defaulted, the bank moved to enforce the personal guarantees, ultimately leading to this bankruptcy declaration.
Failed Repayment Proposal
Before the tribunal passed this order, Dhoot attempted to prevent the bankruptcy by submitting a repayment plan in June 2026. The proposal involved a payment of Rs 600 crore, structured over three years, which was linked to a real estate project in Siliguri. However, the resolution professional and the committee of creditors rejected this offer. They determined that the proposal was insufficient and carried high uncertainty, as it depended on future regulatory approvals and volatile cash flows rather than guaranteed assets.
Asset Liquidation and Regulatory Impact
With the bankruptcy order now in force, the NCLT has appointed Asish Narayan as the bankruptcy trustee. This trustee is authorized to identify, secure, and manage the liquidation of Dhoot’s personal assets to satisfy the claims of creditors. Under the Insolvency and Bankruptcy Code (IBC), Dhoot is legally required to submit a comprehensive statement of his personal financial position within seven days of the order. The trustee must then prepare a preliminary report for the NCLT and the committee of creditors within 90 days.
For investors and creditors, this development is a critical step in the recovery process. The bankruptcy declaration brings significant personal restrictions under the IBC, such as a bar on acting as a director of any company or managing financial affairs. While Videocon Industries has been undergoing a separate and prolonged corporate insolvency resolution process for years, this specific action targets the promoter’s personal estate.
The next important stage for stakeholders will be the trustee’s report, which will outline the actual value of personal assets available for recovery. Investors should note that the realization of any funds from this personal bankruptcy process remains subject to the assessment of the trustee and the subsequent liquidation proceedings.