Banks, Others May Lose over Rs90,000 Crore as Videocon Sinks
The beleaguered Videocon group has admitted to stupendous outstandings to various lenders—public and private—amounting to over Rs90,000 crore, making it perhaps the biggest corporate bankruptcy case in Indian banking history, official sources said on Thursday.
The two main group companies—Videocon Industries Ltd (VIL) and Videocon Telecommunication Ltd. (VTL)—owe Rs59,451.87 crore and Rs26,673.81 crore, respectively or a staggering Rs.86,125.68 crore to Indian banks, led by the State Bank of India (SBI).
Besides, 731 other operational creditors have made separate claims of Rs31,117, 971,029 (VIL) and Rs12,669,978,507 (VTL) for a total of over Rs90,000 crore, the sources said.
Interestingly, even the Group promoters—Venugopal Dhoot, Pradipkumar Dhoot and Rajkumar Dhoot—have also filed claims of Rs57,823.24 crores on the basis of personal guarantees provided by them for various facilities availed/guaranteed by VIL, which are under evaluation.
The VTL has also claimed Rs17,86,94,69,659 from VIL on which there is no dispute and has been accepted in toto.
This and other data has been uploaded by the company's Resolution Professional (RP) on its website today for varing periods ranging from November 2018 to January 2019.
Industry sources say this will be the biggest private sector bankruptcy in India after the Insolvency and Bankruptcy Code was introduced in 2016 for debt resolution—with wide-ranging ramifications for both the corporate world and the banking sector.
Last year, the company was sent by the SBI to the National Company Law Tribunal after the Dhoot-family owned company defaulted on its loans.
As per the IBC regulations, the company's board of directors has been suspended and a RP appointed to manage its routine daily operations.
Revealing the figures of claims, VIL has named a whopping 54 Indian and foreign banks, financial institutions and even a cooperative bank to whom it owes a staggering Rs 59,451.87 crore.
Against this, claims of Rs57,443.62 crore have been admitted while claims of Rs1,149.57 crore have been rejected and those worth Rs.782.24 crore are being verified.
There's the ICICI Bank with a claim of Rs3,318.08 crore on VIL and another Rs1,439 crore on VTL.
It may be recalled that in January this year, the CBI had booked the then ICICI Bank managing director and CEO (chief executive officer) Chanda Kochhar, her husband Deepak Kochhar, VIL's Venugopal Dhoot and others, in an alleged quid pro quo loan scam, for criminal conspiracy and cheating.
Later that month, Chanda Kochhar quit but, in a drastic action, she was sacked by the Bank which also revoked all her entitlements and appointed a new COO (chief operating officer), Sandeep Bakshi, in her place.
On 31st January, the Justice BN Shrikrishna committee appointed to probe the scam found her guilty of flouting the ICICI Bank's code of conduct as she failed to discharge her fiduciary functions to rescue herself to avoid any conflict of interest.
Among the claims of VIL's 54 lenders are 34 banks with SBI making the biggest claim of Rs11,175.25 crore; from VTL's total 34 lenders, SBI has claimed the highest amount of Rs4,605.15 crore.
From VIL, the second highest claimant is IDBI with Rs9,561.67 crore crore. From VTL, the Central Bank of India is the second biggest claimant with Rs3,073.16 crore.
From VIL, the Latur Urban Cooperative Bank (Maharashtra) is the lowest claimant with Rs33 lakh and from VTL, the lowest claim has been submitted by Bank of Maharashtra for Rs21.13 crore.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
5 years ago
Those who hold private sector lenders in high esteem, Videocon defaults should have come as a shocker. One thing I appreciate about Shoots ( promoters). They have named their group that ends with "con". That implies and have alerted those who come into contact (especially the lenders) that we are "cons" and so be aware. If you have ignored these warnings, you do so at your own peril. Now at least in this case don't you have appreciation for Dhoots? Sorry jokes have no place during funeral function.
Ramesh Poapt
5 years ago
A book on all major defaulters history may be best seller!
Dr.Dhananjaya Bhupathi
5 years ago
1. This ICICI scam involving INR.90000 crores ---------- eclipses PNB scam involving INR.13000 crores.
2. Where are the culprits, VIL couple Mrs. Chanda Kochhar, her husband Deepak Kochhar? Are they in India or in England to join other fugitives, Vijay Mallya , Nirav Modi, Lalit Modi & Mehrul Choksi, etc.
3. Why can’t BJP lead NDA/TRS lead Federal Front include in its election 2019 manifesto addressing these prime issues involving Indian Citizens’ hard-earned wealth in Banks?
4. It is open secret that CONGRESS lead UPA can’t afford to include in its election manifesto.

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