New Delhi: The troubles of the bankrupt Videocon Industries are increasing continuously. Now the Ministry of Corporate Affairs (MCA) has planned to make the maximum recovery of the debt by confiscating the properties of Videocon Industries. For this, the ministry has also identified assets worth more than Rs 5,000 crore of the company. Sources close to the knowledge of the development said that efforts are on to trace more assets of the company.
Banks are getting 4.15 percent of their dues
The government is monitoring the resolution of the Videocon case. In this, banks are getting only 4.15 percent of their dues. This is one of the biggest causes of bankruptcy in the country. The government is exploring all avenues for maximum recovery. The Ministry of Corporate Affairs is planning to use its powers to confiscate the properties of the company and recover from their sale. The ministry has applied for attachment of the properties of Videocon Industries to the Mumbai Bench of the National Company Law Tribunal (NCLT) under sections 241 and 242 of the Companies Act. Sources told Moneycontrol that the matter can be heard this week.
Banks had complained of low recovery in resolution
In 2018, bankruptcy proceedings were filed against entrepreneur Venugopal Dhoot’s Videocon Industries. In this, the total outstanding amount was stated to be Rs 71,433.75 crore. However, only claims of Rs 64,848.63 crore were accepted. Banks giving loans to the company had complained about very low recovery in resolution. In December 2020, a plan of Rs 2,900 crore for 13 firms of Anil Agarwal’s Twin Star Videocon Group was approved by the Committee of Creditors (CoC). However, the company’s founder and chairman Venugopal Dhoot challenged this in the National Company Law Appellate Tribunal (NCLAT).
