Sunday, 22 May, 2022
HomeEconomyDeep in debt, Videocon blames Modi's India, Supreme Court and Brazil

Deep in debt, Videocon blames Modi’s India, Supreme Court and Brazil

Text Size:

State Bank of India filed an insolvency petition against Videocon. The TV maker filed an appeal to get back control, blamed India and Brazil for bad debt pile.

Who’s at fault for Videocon Industries Ltd.’s Rs 39 billion ($579 million) debt pile? The Indian maker of consumer appliances is casting the blame on Prime Minister Narendra Modi, Supreme Court and the Brazilian government.

A bankruptcy court admitted an insolvency petition filed by creditors, led by State Bank of India against Videocon, and ordered debt reorganisers to take over its management. That prompted the company to file an appeal to wrest back control, according to an exchange filing on Tuesday.

Modi’s clampdown on cash in November 2016 chocked supplies for making cathode ray tube 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 India’s Supreme Court canceled licences.

The company’s shares, which have plunged a whopping 96 percent over the past five years, traded at Rs 7.65 at 12:26 PM. in Mumbai.

Videocon’s energy business failed to get approvals from the Brazilian government to start its equal venture with Brazil Petroleum Ltd. In India, the company lost a revenue source when the top court in February 2012 canceled 156 licenses of various telecom operators, according to the filing. -Bloomberg

Subscribe to our channels on YouTube & Telegram

Why news media is in crisis & How you can fix it

India needs free, fair, non-hyphenated and questioning journalism even more as it faces multiple crises.

But the news media is in a crisis of its own. There have been brutal layoffs and pay-cuts. The best of journalism is shrinking, yielding to crude prime-time spectacle.

ThePrint has the finest young reporters, columnists and editors working for it. Sustaining journalism of this quality needs smart and thinking people like you to pay for it. Whether you live in India or overseas, you can do it here.

Support Our Journalism

Most Popular

×