Janata Bank auctions lands of S Alam Refined Sugar, Super Edible Oil to recover loans
Nearly the entire loan of around Tk10,000 crore taken by the S Alam Group from Janata Bank has become non-performing, as per the bank
State-owned Janata Bank has put 2,971 decimals of land from S Alam Refined Sugar Industries Limited, a company of the controversial S Alam Group, up for auction to recover outstanding loans.
It also put up for auction land worth Tk1,008 crore (as of 30 Nov) belonging to S Alam Super Edible Oil.
Participants have to confirm their bid within 23 January.
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Announcing the land auction through a public notice, Janata Bank stated it is owed Tk1,777 crore by S Alam Refined Sugar. The loan was taken from the Sadharan Bima Bhaban Corporate Branch of the bank in Chattogram.
According to the bank, nearly the entire loan of around Tk10,000 crore taken by the S Alam Group from Janata Bank has become non-performing. As a result, it is auctioning the land mortgaged against each of these loans, one after another.
Previously, Janata Bank had auctioned land belonging to the S Alam Group to recover defaulted loans. On 20 November, 1,860 decimals of land were auctioned to recover a defaulted loan of Tk1,850 crore. This loan was owed by the group's affiliate, Global Trading Corporation Limited. The loan was taken from the same branch of the bank, where the auction was held.
According to sources from Janata Bank, S Alam Group has been a customer of the bank since 2004. The group has taken more than 80% of the loans provided by the bank's Sadharan Bima Bhaban Corporate Branch in Chattogram.
Against a total loan of Tk10,100 crore, the bank holds mortgaged land and properties worth Tk2,749 crore. This means that even if these lands and properties are sold, Janata Bank will not be able to recover the full amount.
To recover the dues, the bank filed a loan default case on 1 December at the Chattogram Money Loan Court.
In this case, the court has issued summons against 10 individuals, including S Alam Group's chairman, Md Saiful Alam, his wife, five siblings, his brother's wife, and one director of the group.
During the ousted Awami League government, seven banks – Islami Bank, Al-Arafah Islami Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank, Union Bank, and Bangladesh Commerce Bank – were under the control of the S Alam Group.
It is alleged that S Alam Group withdrew at least Tk1.5 lakh crore from these banks and various other institutions, most of which has been siphoned off abroad.
S Alam Group recently shut down its eight sugar, steel, and bag factories after being unable to import raw materials due to a lack of cooperation from banks.
