UCB to recover only Tk60cr auctioning collateral against Adnan's 2 companies' Tk687cr default

UCB Bank issued auction notices yesterday for collateral tied to defaulted loans amounting to Tk1,067 crore from three companies, including two chaired by Mohammed Adnan Imam, former executive committee chairman of NRBC Commercial Bank.

Adnan's two companies – AWR Developments (BD) and AWR Real Estate – owe Tk687 crore to UCB, while Bangla-UK Agro Products, under the same UCB's Karwan Bazar branch, has defaulted on a Tk380 crore loan.

However, the auction is expected to recover only Tk80 crore, according to a bank official.

The loans of Adnan's two companies are backed by properties in Gulshan, amounting to 27,000 square feet of floor space, said the official, requesting anonymity. 

However, these assets are only expected to bring in a maximum of Tk60 crore, leaving a substantial deficit that UCB will have to absorb, said the official.

He said legal actions will be taken to recover the remaining debt, and any assets invested under false names in other companies will be legally seized.

"Besides, if any funds have been laundered, the bank will pursue legal measures to retrieve them," he added.

An analysis of data from the Registrar of Joint Stock Companies And Firms (RJSC) reveals that Adnan Imam is the chairman of both AWR Developments and AWR Real Estate. One of the companies lists his father's name as Chowdhury Fazle Imam, while the other lists AK Moinuddin.

Both companies show a capital of Tk10 crore each.

AWR Developments is registered at AR Tower, 24 Kamal Ataturk Avenue, Banani, Dhaka, with Managing Director Salahuddin Nasir. The company's shareholders include Chowdhury Fazle Imam (80,000 shares), Mohammed Adnan Imam (1.80 lakh shares), and his wife Nilofar Imam (1.40 lakh shares).

AWR Real Estate is listed at Syed Grand Centre, Sector-07, Uttara, with Managing Director Salahuddin Nasir (Ex-Officio). This company lists Chowdhury Fazle Imam (25,000 shares) and Mohammed Adnan Imam (25,000 shares) as shareholders.

Attempts to reach Adnan Imam for comments were unsuccessful as he did not respond to phone calls.

Bangla Uk Agro Products 

According to RJSC data, Bangla UK Agro Products' registered capital stands at only Tk1 crore, with a share value of Tk10 per share.

The company is listed as being owned by six directors: Mezbah Uddin with 4,000 shares, Shahadath Hossain Towfikee with undisclosed shares, Zahidul Islam 15,500 shares, Rokeya Islam holding 8,000 shares, Borhan Uddin Chowdhury with 85,000 shares, and Amer Rasul 87,500 shares.

However, several UCB officials alleged that the company is effectively controlled by Adnan Imam. They pointed to its registered address – Plot-35, Flat-5(A), AWR U Tower, Road-133, Gulshan-1 – which matches a building owned by Adnan Imam's firm.

The auction notice for the company lists 197 decimals of land in Gazipur, valued at an estimated Tk20 crore.

Mezbah Uddin, former managing director of Bangla UK Agro, told The Business Standard that the company has been in regular communication with the bank and is trying to regularise the loan in accordance with legal procedures.

"However, I just learned from you that the collateral for the loan has been put up for auction. This news has left me completely confused," he said. 

He added, "While the collateral may be insufficient, the value of our factory is around Tk100 crore. Our fisheries project spans about 60 acres, and this land is fully owned by our company."

When asked about any connections between Bangla UK Agro and Adnan Imam, he said, "There is no direct relationship between our company and Adnan." 

However, he did not respond to queries about the company's address being listed at AWR U Tower.

CID seeks details of UCB officials 

The Financial Crimes Unit of Criminal Investigation Department (CID) on 8 December sent a letter to UCB Bank requesting detailed information regarding 64 borrowers and 30 senior officials as part of an investigation into allegations of money laundering involving former land minister Saifuzzaman Chowdhury.

The letter said that Saifuzzaman and individuals linked to him allegedly exploited their positions of power within the bank's board of directors to secure undue benefits and approve irregular loans.  

It said Saifuzzaman and his family's involvement in securing fraudulent loans, adding that these loans were facilitated by "unethical practices, including "manipulating loan files, pressuring branch managers, and approving high-risk proposals without proper due diligence".

Officials whose details have been sought include former managing directors Arif Qaderi and Shawkat Jamil, Additional Managing Directors Abul Alam Ferdous and Nabil Mustafizur Rahman, and former additional managing director Hamiduzzaman.

Sharif Abdullah, former credit officer at UCB Bank, said, "As the head of CRMD, Nabil Mustafizur Rahman was directly involved in approving fraudulent loan proposals for the three companies." 

He alleged that Nabil facilitated misleading risk assessments, making the loan proposals appear viable when they were not, and coerced branch-level officers into approving and disbursing loans without proper due diligence.

He added that the beneficiaries of these loans include former UCB chairperson Rukhmila Zaman's husband Saifuzzaman, his brother Anisuzzaman Ronny, and Adnan Imam, a close associate of Nabil. 

UCB Bank MD and CEO Mohammad Mamdudur Rashid did not respond to phone calls for comments.