Corporate

Banks move DRT to enforce personal guarantees provided by Dhoots for Videocon loans

A consortium of banks has applied to the debt recovery tribunal in Delhi seeking to enforce personal guarantees on the promoters of Videocon group, Venugopal Dhoot and his brother Rajkumar Dhoot. Videocon owes these banks Rs 20,000 crore. An application by the State Bank of India that has reviewed said it was approaching the tribunal as the Dhoots did not respond to a guarantee invocation notice sent to them. The Dhoots had promised to personally repay the banks if their companies defaulted on the loans, according to the application. State Bank of India has requested the tribunal to pass orders and issue certificates of recovery against the Dhoots. Similar applications were filed by other lenders such as ICICI Bank, Andhra Bank, IDBI Bank and Bank of India, according to sources familiar with the matter. It is a policy of the bank not to comment upon individual accounts and its treatment, a spokesperson for SBI said in response. SBI has separately initiated insolvency proceedings against Videocon group parent, Videocon Industries Limited, and 14 other group companies at the National Company Law Tribunal (NCLT) in Mumbai to recover the dues.

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