Nurjahan Group MD Ratan denied bail in cases filed over Tk6,000cr loan default

Zahir Ahmed Ratan, managing director of the Chattogram-based Nurjahan Group, has been denied bail in cases over defaulting loans worth around Tk6,000 crore.

Joint District Judge Mujahidur Rahman of Chattogram Money Loan Court issued the order yesterday.

Ratan had appealed to the court to execute all sentences together for over 20 loan default cases against him. The court, however, rejected the appeal.

On 28 December, Ratan was arrested from Dhaka's Badda area by a police team from Kotwali Police Station in Chattogram. 

During the arrest, police informed that there were 61 cases against him in four police stations of Chattogram city. In at least 26 cases, he faces arrest warrants and a ban from leaving the country. Various banks initiated these cases, accusing Ratan of defaulting on loans amounting to Tk6,000 crore.

Ratan had been absconding since the issuance of an arrest warrant in a case in September last year.

Subsequently, he was ordered to submit his passport the same month, but he did not comply. The court passed the orders in a case filed by Southeast Bank in 2020 involving the default of a Tk268 crore loan.

During his court appearance yesterday, Ratan addressed various issues, including his business, loan collection, and financial challenges. 

When questioned about claims against his company, his lawyer disclosed that all properties were mortgaged.

Ratan recounted a time of substantial tax payments, business contributions, and challenges during the "1/11" emergency government period. He described a forceful production of oil and subsequent losses, leading him to take another Letter of Credit (LC) to recover.

Ratan said if the bank had demanded repayment then, his current situation might have been avoided, detailing the compounding impact of interest, dollar crisis, and currency exchange difficulties.

The judge, considering the country's major defaulters, pointed out the opportunity for rescheduling, which Ratan did not pursue. Ratan acknowledged his weaknesses, refuted claims of money laundering, and expressed frustration over betrayal by several banks.

He claimed to have maintained employee salaries despite financial constraints and clarified his involvement in legitimate LC transactions. Ratan pointed out that others, like Elias Brothers, are also in a similar difficult situation, rejecting the idea that everyone facing financial challenges is a thief.

The judge commented on the lack of transparency in the banking system, citing Ratan's case as an example. He highlighted proven conspiracies and ongoing actions by the Anti-Corruption Commission (ACC) against implicated individuals and banks.

When questioned about repaying the loans, Ratan initially expressed his intention but criticised the way the bank dealt with the matter, showing a resigned acceptance of his current imprisonment.

Nurjahan Group was once a leading consumer goods trading entity in Chattogram. Substantial losses in the consumer goods business, land acquisitions through loans, and the lavish lifestyle of executives have resulted in the conglomerate accumulating significant debts from various banks.

According to sources, the group had at least 20 subsidiaries, including Marine Vegetable Oils, Nurjahan Super Oil, and Jasmir Vegetable Oil. However, over the last five to seven years, most of the entities have closed due to business losses and defaults to various banks.

In September 2022, the police arrested Tipu Sultan, a director of the group and Ratan's brother, from Gulshan in the capital. He is currently in Chattogram jail.