Real Estate Mumbai
Videocon's Dhoot Bankrupt: Real Estate Impact for Maharashtra Buyers
By GeoSquare News Desk · Published 2026-11-07
The National Company Law Tribunal (NCLT) has admitted the bankruptcy plea filed by State Bank of India (SBI) against Videocon group promoter Venugopal Dhoot. The claim amounts to Rs 1.26 lakh crore, making it one of the largest insolvency cases in India. While the case primarily concerns the electronics and consumer durables business, its ripple effects are being felt across the real estate sector, particularly in Maharashtra where Videocon had several land parcels and ongoing projects.
Impact on Real Estate Projects
Videocon's real estate arm had acquired land in Mumbai and other parts of Maharashtra for residential and commercial developments. With the promoter now declared bankrupt, these projects face further delays. Lenders and resolution professionals will now take control of assets, including land banks, which could be auctioned or repurposed. For homebuyers who booked units in Videocon's projects, this adds another layer of uncertainty.
What Homebuyers Should Know
Homebuyers are considered financial creditors under the Insolvency and Bankruptcy Code (IBC). This means they can file claims with the resolution professional. However, recovery may be a long process, and there is no guarantee of full refunds. Buyers should document all payments and agreements, and actively participate in the insolvency proceedings to protect their interests.
Legal Recourse for Buyers
Affected homebuyers can approach the NCLT or the Real Estate Regulatory Authority (RERA) for Maharashtra. RERA can intervene if the project is registered, but many Videocon projects may not have been registered. In such cases, legal action under the IBC or consumer courts is an option. It is advisable to consult a legal expert specialising in insolvency and real estate law.
This bankruptcy ruling serves as a reminder for property buyers to verify the financial health of developers before investing. While the IBC provides a mechanism for recovery, the process is time-consuming and outcomes are uncertain.