NCLT orders freezing of all assets of Videocon’s Venugopal Dhoot

MUMBAI: In a recent twist within the Videocon case, the Nationwide Firm Regulation Tribunal (NCLT) has ordered a national search and freeze of the property of Venugopal Dhoot, his spouse, his firm and the agency’s chief monetary officer in addition to firm secretary.
The order was in response to a petition filed by the ministry of company affairs (MCA) in opposition to the bankrupt group. The MCA’s transfer comes within the wake of banks with the ability to recuperate solely 4% of their admitted claims of Rs 64,838 crore below the chapter course of.
The federal government had approached the tribunal below Part 241 and 242 of the Firms Act, which empowers the MCA to behave if there’s a fraud, misfeasance or persistent negligence.

Responding to the petition, the tribunal has instructed the MCA to serve notices to reveal on affidavit moveable and immovable properties/property, together with financial institution accounts, owned by them in India or wherever on the planet. It additionally directed the Central Depository Companies (CDSL) and Nationwide Securities Depository (NSDL) to freeze all securities held by the respondent, which embody the Dhoots, the corporate and senior administration.
The Central Board of Direct Taxes has additionally been requested to reveal the knowledge it has in its possession of all of the respondents.
The Indian Banks Affiliation has been directed to facilitate disclosures of the main points of the financial institution accounts, lockers owned by the respondents (numbers 2 to six) and such financial institution accounts and lockers even be frozen with speedy impact.
Lastly, the MCA has been instructed to jot down to state governments and Union Territories to determine and disclose all particulars of immovable properties held by the respondents.
Regardless of receiving a bid for less than 4% of the admitted debt, which was near the liquidation worth, lenders had agreed to promote Videocon to Twin Star, a Vedanta firm.
Not like enforcement authorities which have sweeping powers, banks below insolvency can solely pursue property of the corporate that has gone bankrupt. The sale was, nevertheless, stalled because the appellate tribunal granted a keep following an attraction from Financial institution of Maharashtra — a dissenting creditor.
In its order on Wednesday, the NCLT stated, “This bench is shocked with the way by which the monetary establishment has come ahead to grant loans to a sinking ship and once more come ahead to file petition below Part 7 of IBC and once more helps this petition. This definitely rises the eyebrows of the frequent man within the public.”