Vedanta: Obstacles again in Vedanta’s way to buy Videocon, know where the screw is stuck?

New Delhi: Twinstar Technologies, owned by Vedanta, a company of India’s veteran businessman Anil Agarwal, started trying to buy Videocon Industries. Now Twinstar Technologies has asked the Supreme Court to dismiss the petition of Venugopal Dhoot, chairman of Videocon Industries. Venugopal Dhoot’s company Videocon Industries is facing bankruptcy law and 12 group companies including Videocon Industries are up for sale. Vedanta Group’s bid of 3000 crores to buy Videocon has been around its liquidation value.

The bank that gave loan to Videocon Industries and the National Company Law Tribunal had approved the bid of Twin Star, a Vedanta Group company. Twin Star Technologies had bid for Rs 2962 crore to buy Videocon.

This bid was made under the Insolvency and Bankruptcy Code. Venugopal Dhoot has challenged this bid in the Supreme Court and requested to direct the lending banks to accept Venugopal Dhoot’s Rs 31,789 crore resolution plan.

Last week on April 17, the country’s top court had sought Twinstar’s response on this appeal. In its response, Twinstar Tech of Vedanta Group had claimed that Dhoot kept waiting till the last moment. When all the companies have deposited the bid amount, then they want to obstruct the completion of the bankruptcy process.

Twin Star has alleged that Venugopal Dhoot wants to obstruct the company’s resolution process. Former Videocon chairman Venugopal Dhoot has said in an appeal filed in the Supreme Court on 8 August 2022 that the case has been listed on 17 occasions, but no notice has been issued so far.

According to Twinstar, Venugopal Dhoot has never challenged the decision of the banks that gave loan to Videocon. He has demanded to reject the proposal given under the Insolvency and Bankruptcy Code under IBC Section 12A. The process of winding up under this section includes taking out the company.
In December last year, the CBI arrested Videocon founder Venugopal Dhoot in the ICICI Bank loan case. Venugopal Dhoot, former CEO and MD of ICICI Bank Chanda Kochhar, her husband Deepak Kochhar were sent to CBI custody till 28 December. After the arrest of Venugopal Dhoot, the Videocon group again came into limelight.