Videocon blames PM Modi, Supreme Court and Brazil for Rs 39,000 crore debt

NEW DELHI: Who’s at fault for Videocon Industries Ltd.’s Rs 39,000 crore debt pile? The consumer appliances maker is casting the blame on Prime Minister Narendra Modi, the Supreme Court and the Brazilian government.
 

HIGHLIGHTS

• In a filing to the exchanges, Videocon Industries has claimed demonetisation forced to shut its CRT television business
• While its oil and gas business got entangled in red tape in Brazil, the telecommunications venture suffered losses after the Supreme Court canceled licenses, Videocon has said

Videocon Industries is facing bankruptcy proceedings after the National Company Law Tribunal (NCLT) last week admitted a plea from lenders, led by State Bank of India (SBI), to initiate a resolution process with a new owner to be found through a bidding process over the next 180 days.

That prompted the company to file an appeal to wrest back control, according to an exchange filing on Tuesday.

PM Modi’s demonetisation decision in November 2016 chocked supplies for making cathode ray tube (CRT) televisions and forced it to shut the business, Videocon said in the filing. While its oil and gas business got entangled in red tape in Brazil, the telecommunications venture suffered losses after the Supreme Court canceled licenses.

The company’s shares, which have plunged a whopping 96 per cent over the past five years, traded at Rs 7.56 at 2.10 pm on the BSE on Tuesday.