Venugopal Dhoot declared bankrupt by NCLT over Rs 12,668 crore SBI dues

The Mumbai bench of the National Company Law Tribunal (NCLT) has declared former Videocon promoter Venugopal Dhoot bankrupt on a petition by the State Bank of India (SBI), over dues of about Rs 12,668 crore linked to loans taken by Videocon Industries. The order, passed on Thursday, 5 November 2026, and reported on 6 November, follows the failure of Dhoot's personal insolvency resolution process and repayment plan. Dhoot had given personal guarantees for loans that Videocon Industries took from SBI and its former associate banks. The tribunal appointed Asish Narayan as bankruptcy trustee and said Dhoot's estate would be divided among his creditors. According to reports of the order, no one appeared for Dhoot before the tribunal.

This is one of the clearest examples of how India's Insolvency and Bankruptcy Code (IBC) now reaches the promoters behind failed companies, not just the companies themselves. Promoters in India have long signed personal guarantees to get large bank loans for their firms. The IBC's provisions for personal guarantors let lenders pursue those guarantees through a formal process, and SBI's case against Dhoot has moved through each stage: a personal insolvency process, a failed repayment plan, and now bankruptcy.

Bankruptcy is a more serious stage than insolvency resolution. In the resolution process, a debtor can propose a repayment plan to creditors. Once a person is declared bankrupt, a trustee takes control of the estate, collects claims from all creditors and distributes what can be recovered among them. The bankrupt person also faces legal restrictions while the bankruptcy lasts.

For banks, especially public sector lenders such as SBI, the case signals that personal guarantees given by promoters will be pursued to the end. For MSME owners and other businesspeople who sign such guarantees routinely when borrowing, it is a reminder that a guarantee is not a formality: it can expose personal assets if the business fails.

Peepals timeline: Videocon Industries entered insolvency proceedings in 2018. SBI moved against Venugopal Dhoot as personal guarantor on 1 September 2020 (a Tuesday). His personal insolvency resolution process began in April 2026, according to reports, and after the repayment plan failed, the NCLT declared him bankrupt on 5 November 2026 (a Thursday). That is a little over six years from SBI's petition to the bankruptcy order. Our timeline from the dates in the reports.

Short-term: The bankruptcy trustee, Asish Narayan, will issue a public notice inviting claims from Dhoot's creditors and take charge of his estate. Dhoot is required to give the trustee a statement of his financial position.

Long-term: The case adds to the personal-guarantor cases being decided under the IBC and may encourage lenders to pursue similar claims against other promoters of failed companies. How much SBI and other creditors actually recover from Dhoot's estate remains to be seen.

Who is affected: SBI and other banks that lent to Videocon; Venugopal Dhoot; promoters and MSME owners who have given personal guarantees for business loans; and insolvency professionals working on similar cases.

What to watch next: The trustee's public notice inviting claims from Dhoot's creditors.

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