Videocon resolution professional moves SC to direct govt to return $354 mln
This story was originally published at 18:28 IST on 18 September 2025
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NEW DELHI – The resolution professional of Videocon Industries Ltd. has moved the Supreme Court seeking a direction to the government to return $353.74 million, which was diverted to it by a consortium including Videocon over alleged dues arising out of a production sharing contract. Further, the resolution professional also sought lifting of a stay order, which had essentially allowed the government to receive 100% of sale proceeds of oil and gas invoices from the company towards the alleged provisional unpaid share of profit petroleum dues.
Meanwhile, the Ministry of Petroleum and Natural Gas has asked the top court to implead the company in the case as the former has legitimate sovereign claims against Videocon Industries under the 1994 production sharing contract. Videocon Industries owes "millions of dollars" to the ministry under the contract which it has wrongfully withheld, said the ministry.
The case has its genesis from a production sharing contract executed between the government and ONGC Ltd., Videocon Industries, Vedanta Ltd. and Ravva Oil (Singapore) Pte. Ltd. in 1994. In 2018, the government issued demand notices to these oil companies, directing them to assign and allocate 100% of sale proceeds of oil and gas invoices towards the alleged provisional unpaid share of profit petroleum dues. In the notice, the government sought recovery of an alleged shortfall of $118 million from Videocon Industries, which was reduced to $86 million later.
However, the demand notice was issued against Videocon Industries when it was undergoing a corporate insolvency resolution process. Consequently, the National Company Law Tribunal in 2019 directed the government not to press or implement the demand notice during the commencement of insolvency proceedings, and as long as the "moratorium" was applicable to Videocon Industries. This order was upheld by the National Company Law Appellate Tribunal as well.
On Nov. 13, 2019, the apex court stayed the appellate tribunal's order on an appeal by the government. Videocon Industries has filed the current plea in the Supreme Court seeking vacation of the interim order. The aggregate sale proceeds of Videcon Industries diverted by the government in terms of the notice, after the passing of the stay order, far exceeds the alleged dues of $86 million, said the resolution professional. Even though the demand notice had only raised demand for a specified amount, the government, solely by virtue of the operation of the stay order, was continuing to receive 100% of the sale proceeds belonging to the company, said the resolution professional. End
US$1 = INR 88.13
Reported by Surya Tripathi
Edited by Tanima Banerjee
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