New Delhi, Feb 16 (NationPress) A Special Court has formally notified Venugopal Dhoot along with 12 additional entities regarding their involvement in the ₹61,773 crore bank loan fraud linked to Videocon’s oil and gas operations in Mozambique, as per an announcement from the Directorate of Enforcement (ED) on Monday.

The notification, released by the special court located at Rouse Avenue in Delhi, follows a prosecution complaint lodged by the ED on December 18, 2024, under the Prevention of Money Laundering Act (PMLA), pertaining to the Videocon Mozambique Oil Deal against V. Dhoot and 12 other parties.

The ED has uncovered that the foreign currency loan facilities secured by the Videocon Group, which included the SBLC Facility from the SBI-led consortium, the Jupiter Facility, and the Standard Chartered Bank Facility, were systematically misappropriated from their intended uses, which were aimed at the development and refinancing of overseas oil and gas assets.

This diversion of funds was orchestrated under the supervision of the Videocon Group promoters, involving active participation from foreign group entities and intermediaries, according to the statement.

The banks have filed a cumulative claim amounting to ₹61,773.02 crore, which includes a non-performing asset (NPA) of ₹23,647.12 crore related to the SBLC facility. The accounts of VIL and its affiliated companies were designated as NPA in 2018.

A significant portion of the misappropriated funds was funneled back into India through the financial records and accounts of Videocon Industries Limited (VIL) and its Indian affiliates.

These inflows were disguised as export advances, loan repayments, investments, or equity contributions, which helped in concealing, integrating, and presenting the diverted funds as legitimate earnings.

To obscure the actual utilization of the funds and maintain access to credit facilities, fraudulent and misleading utilization certificates were submitted to the lending banks. An investigation revealed that out of a total facility of USD 4.54 billion, USD 2.02 billion was diverted by the promoters of the Videocon Group for unintended purposes.

The accounts of M/S VIL and its subsidiaries became NPA in 2018.

The ED has issued two Provisional Attachment Orders for seizing assets worth ₹17.69 crore and ₹38.58 crore in this matter. The prosecution complaint was filed by the ED on December 18, 2024, targeting proceeds of crime totaling ₹1136.49 crore against V. N. Dhoot and 12 other parties.

The method employed for misdirecting the funds involved channeling the loan proceeds through Videocon Hydrocarbon Holdings Limited and its foreign oil and gas subsidiaries.

The funds were subsequently filtered through a convoluted network of overseas Videocon Group companies engaged in activities unrelated to oil and gas operations: M/s. Venus Corporation Limited, M/s. Eagle Corporation Limited, M/s. Paramount Global Limited, M/s. Quadrant Corporation Limited, M/s. Sky Billion Trading Limited, and M/s. TGDC Guangdong Display Co., Ltd.

Through circular transactions involving export advances, intercompany loans, and investments, the funds were misappropriated and routed back to India. They were utilized for purposes unrelated to the sanctioned objectives, including covering expenses for non-oil businesses, making investments, and generating personal and corporate assets, as explained by the ED.

Previously, the CBI, following a preliminary inquiry, lodged an FIR under the Prevention of Corruption Act, citing offences of “Criminal Conspiracy, Cheating, and Criminal Misconduct” involving V. N. Dhoot, unidentified bank officials, and others.