Delhi court takes cognisance of ED's prosecution complaint in Videocon case

A special court in Delhi has taken cognisance of a prosecution complaint filed by the Enforcement Directorate (ED) against industrialist V Dhoot and 12 other individuals and entities in connection with the Videocon Mozambique oil deal case, the agency said on Monday.

The court has issued notices to all 13 accused in the money-laundering case. The prosecution complaint was filed in December 2024 under provisions of the Prevention of Money Laundering Act (PMLA).

The ED probe stems from a June 2020 FIR by the Central Bureau of Investigation (CBI).

According to the agency, foreign currency loan facilities availed by the Videocon Group were systematically diverted from their sanctioned purposes of development and refinancing of overseas oil and gas assets.

The standby letter of credit (SBLC) for the funds was sanctioned by a group of lenders, including a consortium of Indian banks led by the State Bank of India (SBI).

“The diversion of funds was carried out under the overall control and direction of the promoters of the Videocon Group, with the active involvement of overseas group entities and intermediaries,” the ED said.

According to the ED, the modus operandi of the scheme allegedly involved routing loan proceeds through Videocon Hydrocarbon Holdings Limited (VHHL) and its overseas oil and gas subsidiaries. The funds were then layered through a network of overseas Videocon Group companies engaged in activities unrelated to oil and gas operations.

"Through circular transactions, adjustment of export advances, inter-company loans, and investments, the funds were diverted and routed back to India, where they were utilised for purposes wholly unconnected with the sanctioned objectives, including meeting expenses of non-oil businesses, making investments, and creation of personal and corporate assets," the ED alleged.

A substantial portion of the diverted funds was allegedly layered back into India through the books and bank accounts of Videocon Industries Limited (VIL) and its Indian group companies.

"These inflows were camouflaged as export advances, loan repayments, investments, or equity infusions, thereby facilitating concealment, integration, and projection of the diverted funds as legitimate receipts," the agency added.

The investigation revealed that about USD 2.02 billion, out of the total loan facility of USD 4.54 billion, was diverted for non-intended purposes by the promoters of the Videocon Group.

The accounts of VIL and its group companies turned into non-performing assets (NPAs) in 2018. Banks have filed total claims amounting to Rs 61,773.02 crore, including an NPA of Rs 23,647.12 crore in respect of the SBLC facility.

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