Videocon said demonetisation forced the company to shut the cathode ray tube television business, while its telecom business suffered losses after the SC cancelled 156 licenses of telecom operators.
Videocon Industries has blamed Prime Minister Narendra Modi, the Supreme Court of India and the Brazilian government after lenders led by the States Bank of India (SBI) took the company to bankruptcy court for failure to repay dues on its debt of around Rs 3,900 crore, according to a Bloomberg report.
On June 6, National Company Law Tribunal (NCLT)'s Mumbai bench admitted an insolvency petition submitted by the State Bank of India (SBI)-led consortium of creditors against Videocon and ordered debt reorganisers to take over the company’s management.
NCLT’s order had prompted Videocon to file an appeal to take back control, the report said.
Moneycontrol could not independently verify the report.
Meanwhile, Videocon said in its filing that the government’s clampdown on cash in the form of demonetisation, in November 2016 hampered supplies for making cathode ray tube televisions and forced the company to shut the business. The company added that its oil-and-gas business was entangled in red-tapeism in Brazil while the telecommunications business suffered losses after the Supreme Court cancelled 156 licenses of various telecom operators.The Venugopal Dhoot-led company’s energy venture failed to get approvals from the Brazilian government to start an equal venture with Brazil Petroleum.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.