Arrest warrant issued for Ctg ex-mayor Mahmudul over loan default

A Chattogram court has issued an arrest warrant against Mahmudul Islam Chowdhury, former mayor of the Chattogram City Corporation and a central leader of the Jatiya Party, in connection with a Tk10 crore loan default case. 

The case was filed by South Bengal Agriculture and Commerce Bank (SBAC Bank) to recover the unpaid amount.

On Thursday (7 November), Judge Mujahidur Rahman of the Chattogram Money Loan Court issued the warrant, said assistant of the bench Rezaul Karim.

According to court documents, the bank's Agrabad branch had originally filed the recovery case in court, which decreed on 27 March 2024, that Tk9.34 crore with an interest rate of 12% be paid by the borrowers. 

Despite being given 60 days to settle the amount, they failed to comply, leading to a revised demand of Tk10.78 crore on 8 July.

With no immovable property provided as collateral for the loan, the bank was unable to proceed with an auction under Section 33 of the Finance Act. 

Consequently, the SBAC Bank filed an affidavit requesting an arrest warrant against the defaulters under Sections 34 and 35 of the same act. 

Nearly two years after the case was filed, the debt remains unpaid, prompting the court to issue a five-month civil restraining order in a further attempt to recover the funds.

Mahmudul Islam Chowdhury currently serves as a presidium member of the Jatiya Party. He began his political career with the Bangladesh Nationalist Party (BNP) in 1979, becoming a member of parliament for the Chattogram-15 constituency. 

He later won two consecutive parliamentary elections in 1986 and 1988 under the Jatiya Party banner. 

Chowdhury held administrative positions in the then Chittagong Municipal Corporation between 1988 and 1989 and became the first elected mayor of Chittagong City Corporation, serving from 1989 to 1990.