The National Company Law Tribunal’s decision to freeze assets belonging to the Dhoot family, the erstwhile promoters of Videocon group, could jeopardise the company's debt resolution process.

The NCLT has directed the Dhoot family to disclose their moveable and immovable assets, including bank accounts, owned by them in India or anywhere in the world. The order was based on a petition by the Ministry of Corporate Affairs under Section 241-242 of the Companies Act, 2013 against Videocon Industries and its promoters. NCLT expressed surprise at how banks granted loans to Videocon when it was already under so much financial stress.

Experts said that the NCLT's order could delay the debt resolution process under which Vedanta-backed Twin Star Technologies had emerged as the top bidder. The lenders had even agreed to take a 95 per cent hair cut while agreeing to a debt resolution plan by the Vedanta group. This case will come up for hearing at the National Company Law Appellate Tribunal (NCLAT) on September 7. “It's not clear if the NCLAT can proceed with the debt resolution proceedings in the light of the petition filed by the MCA. It is important to know if the NCLT has sought details of Dhoot family's existing personal assets or it also includes the assets under the Videocon group,” said a banking industry source.

However, other sources close to the Vedanta group said that the NCLT order will have no implications on the debt resolution process. “The NCLT order is related to freezing the assets of the former promoters of Videocon, including their bank accounts and attaching their properties. It does not have a bearing on the resolution plan submitted by Twin Star Technologies,” said the source.

The NCLT had earlier approved the offer made by Twin Star Technologies but had expressed surprise that the bid placed by the Vedanta Group entity for acquiring 13 companies under the Videocon Group was almost the same value arrived at by the registered valuers for liquidation. Bank of Maharashtra and IFCI pointed out the NCLT order to show a “ breach of confidentiality clause with regard to the liquidation value.”

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