According to the complaint, the company's directors allegedly transferred large amounts of borrowed funds to related companies and other connected entities.
According to the complaint, the company's directors allegedly transferred large amounts of borrowed funds to related companies and other connected entities.
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NEW DELHI: From a Bajaj Auto dealership in Maharashtra to one of the largest consumer durable companies in the country, life has come full circle for Videocon Industries' ousted promoter Venugopal Dhoot who was declared bankrupt by National Company Law Tribunal (NCLT) a day before Dhanteras, reports Amit Anand Choudhary.Dhoot is one of the most high-profile individuals to be declared bankrupt under the decade-old Insolvency and Bankruptcy Code, with the Mumbai bench of NCLT directing him to file his statement of financial position within seven days with the bankruptcy trustee Asish Narayan, who will manage his estate.A bench of judicial member Vinay Goel and technical member Charanjeet Singh Gulati declared Dhoot bankrupt over dues of Rs 12,668 crore, including interest and penalty, as he had given a personal guarantee for credit facilities extended to Videocon Industries and borrowings connected with Videocon Telecommunications. The petition was filed by State Bank of India."We are satisfied that the petition complies with all the requirements prescribed in Section 123 of the Code. Therefore, we consider it proper to admit this petition and pass the following orders: Venugopal Nandlal Dhoot, the personal guarantor herein, is declared as bankrupt," the tribunal said in its order.The bankruptcy trustee will issue a public notice inviting claims from creditors. The trustee will also handle administration and distribution of the estate.The development is bad news for promoters who had availed loans based on personal guarantees, a norm for corporate loans in the last three decades, but subsequently lost control over their companies as IBC was used for repeated defaults in repayment of dues. Join conversation View All Comments → Share your thoughts in the comments Insightful Agree Disagree Skeptical Concerning Promising Worth Reading Big Development Post Comment Be respectful · TOI community guidelines While provisions related to personal guarantors were notified in Dec 2019, till last June, close to 5,200 applications had been filed for initiation of personal insolvency of which 5,135 were filed with NCLT and the remaining 51 went to debt recovery tribunals. Of the 64 cases that have been approved, the repayment plans have yielded Rs 234 crore -- 1% of the admitted claims, official data showed.Unlike corporate insolvency, where a resolution professional is appointed by NCLT when the case is admitted and a resolution entity then takes over the company, in case of personal bankruptcies, the guarantor has to prepare a repayment plan, which needs to be approved by the tribunal.
Gains 1,781 points fri even as US market, AI stocks crashMUMBAI: In one of the best weekly gains in recent times, sensex closed over 8.8% up as foreign funds came back to buy Indian stocks, as the US midterm polls raised hopes of policy stability, and also of a diplomatic resolution to the war in West Asia, which pulled down crude prices by about 20% in less than two weeks. In fact, the Sensex's seven-session pre-Diwali rally, during which it notched up a 10.6% gain, was also its best such run in 35 years.On Friday, the index gained 1,781 points, its third consecutive session of four-figure point gain, despite an overnight crash in the US market, led by a rout in AI stocks.During its seven-session rally, the sensex added 7,782 points. This surge mainly rode a huge resurgence of buying by foreign portfolio investors (FPIs), which bought Indian stocks worth about Rs 49,500 crore or about $5.2 billion on a net basis, shows data from NSDL and BSE.Nifty on NSE also rallied in a similar manner with the index up 8.6% or 1,977 points this week to close at 25,030 points. The sensex closed above the psychologically important 80K mark and the Nifty above the 25K mark after more than nine months.