CBI registered a case against Videocon president Dhoot

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The CBI has registered a case against Videocon Group chairman Venugopal Dhoot for alleged corruption. Officials said that Dhoot is accused of corruption with the collusion of unknown officials of a group of State Bank of India (SBI) led banks in financing his oil and gas assets in Mozambique.

The investigating agency has filed an FIR after initial investigation on the complaint of the Oil Ministry. Investigations found that in 2008, Videocon Hydrocarbon Holding Limited (VHHL), a subsidiary of Videocon Industries, acquired a 10 percent partnership interest in the oil and gas block in the Roja Region 1 block from the American company Anadarko in Mozambique.

The Mozambique-based asset was later purchased by ONGC Videsh Limited and Oil India Limited in January 2014. In April 2012, a group of banks led by SBI provided a 'Standby Letter of Credit' (SBLC) facility for the development of their oil and gas assets in Mozambique, Brazil and Indonesia.

Also, other requirements of finance allocation were fulfilled in this regard. This group of banks also included ICICI Bank and IDBI Bank. However, part of this debt was 're-financed', including a $ 400 million bailout to Standard Chartered Bank (SCB),London. About 10 months later, VIL told the group that SBI's debt had increased, requested it to be repaid and took charge of the oil and gas assets.