The Ministry of Corporate Affairs (MCA) intends to seize money from Videocon Industries and disgorge it. The MCA has discovered assets worth over Rs. 5,000 crore. According to insiders, the ministry is in the process of finding other assets.
The government is keeping a careful eye on the outcome of the Videocon case, which has resulted in banks receiving only 4.15 percent of their entire due. This is one of India's largest bankruptcy cases. The government is looking at all options in order to recover as much money as possible. MCA is using its ability to attach a company's assets and disgorge money by selling those assets in this procedure.
It has already been determined that there are assets worth more than Rs. 5,000 crore. More are being discovered.
Under sections 241 and 242 of the Companies Act, MCA has filed an application with the National Company Law Tribunal (NCLT) Mumbai Bench to seize Videocon's assets. The application could be heard by the NCLT Mumbai Bench this week.
Videocon Industries was served with a petition for the beginning of bankruptcy proceedings under the Insolvency and Bankruptcy Code of 2016, in 2018. The total value of the claim was about Rs 71,433.75 crore. The total amount of claims accepted is Rs 64,838.63 crore.
A committee of creditors (CoC) accepted the Anil Agarwal-backed Twin Star's Rs. 2,900 crore plan for 13 Videocon companies in December 2020. The idea was challenged in NCLAT by Venugopal Dhoot, the company's chairman and founder.
In his petition to the NCLAT, Dhoot demanded that the NCLT order be overturned and that lenders be directed to consider his Rs. 31,789-crore settlement offer. Videocon Industries and its 12 subsidiary firms owe Rs. 64,838.63 crore to the government.
Three banks have expressed worry about the minimal amount of recovery in the resolution, including Bank of Maharashtra and SIDBI, as well as IFCI and ABG Shipyard, which owns a 0.024 percent share.
Videocon Industries has already been investigated by the MCA's Serious Fraud Investigation Office (SFIO). In July, the SFIO searched the company's and promoter's offices. Videocon Industries has already been investigated by the MCA's Serious Fraud Investigation Office (SFIO). In July, the SFIO searched the company's and promoter's offices.