BackNCLT orders for attaching properties of Videocon promoters
NCLT has asked promoter Venugopal Dhoot to disclose the moveable and immovable properties and bank accounts belonging to the group in India and abroadThe latest order has put further roadblocks on the potential transaction between Twin Star and VIL
PremiumMUMBAI : The Mumbai bench of the National Company Law Tribunal (NCLT) on Tuesday ordered the Videocon group’s bank accounts frozen and properties attached following a petition by the ministry of corporate affairs.
In an order issued late in the evening, the tribunal has asked promoter Venugopal Dhoot to disclose the moveable and immovable properties and bank accounts belonging to the group in India and abroad. The court has also directed the Central Depository Services Ltd, National Securities Depository Ltd, Central Board of Direct Taxes, Reserve Bank of India and Indian Banks’ Association among others to name the Videocon assets under their watch and for them to be frozen with immediate effect in order to be used for recovery of dues.
The ministry had approached the NCLT against Dhoot and other former directors and senior officials of Videocon Industries Ltd (VIL) under Section 241 and 242 of the Companies Act that deals with oppression and mismanagement in the company.
The court noted that the reserves and surpluses of VIL, as declared in the financial statements in 2014, stood at ₹10,028.09 crore and for fiscal year 2019 had slipped to a negative ₹2,972.73 crore, showing a steep fall in just five years.
During the same period, secured loans rose from ₹20,149.23 crore to ₹28,586.87 crore.
“The bench is surprised with the manner in which the financial institution has come forward to grant loans to a sinking ship and again come forward to file a petition under Section 7 of the IBC and again supports this petition. This certainly raises the eyebrows of the common man in the public," read the order.
The order said that transaction audit reports also reveal fraudulent transactions by the promoters.
“We direct the petitioners to use all the powers available with it to extend their long arm to thoroughly investigate the affairs of the companies in all the above-mentioned company petitions and others. Unless it is properly investigated as to how the loans were arranged by the corporate debtors, the fraud will not be completely unearthed that a copy of this order may also be shared with director, SFIO who is already investigating the corporate debtors," the order added.
The latest order by the NCLT has put further roadblocks on the potential transaction between Anil Agarwal-backed Twin Star Technologies and VIL. In July, the National Company Law Appellate Tribunal (NCLAT) had stayed the resolution plan offered by Twin Star to buy VIL after creditors who were unhappy with the modest payout challenged the NCLT’s approval for the plan.
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