Eastern Bank rebuts SS Steel claims, says chairman Javed is a 'wilful defaulter'

Eastern Bank PLC has issued a detailed rejoinder contesting claims made by SS Steel Limited regarding the seizure of assets, asserting that the company's chairman, Javed Opgenhaffen, has been lawfully classified as a wilful defaulter following due regulatory and judicial processes.

The bank's statement comes in response to a clarification published by SS Steel on 18 March, which followed an earlier report on 16 March regarding the attachment of the chairman's Banani residence over a loan default exceeding Tk112 crore.

Eastern Bank has categorically rejected what it describes as "false and misleading" assertions made by the company, arguing that such statements distort the factual and legal realities surrounding the case.

According to the bank, the dispute originates from credit facilities amounting to Tk108 crore extended to SS Steel in 2023 under standard banking practices. These facilities were secured through corporate guarantees as well as personal guarantees from top executives, including the chairman.

However, the borrower allegedly failed to meet repayment obligations shortly after availing the loans, despite repeated reminders, formal notices, and attempts at resolution by the bank.

The persistent default compelled Eastern Bank to initiate regulatory proceedings in line with a Bangladesh Bank directive. A show-cause notice was issued to Javed Opgenhaffen on 27 November 2024, seeking an explanation as to why he should not be declared a wilful defaulter.

After reviewing his response, the bank deemed it unsatisfactory and formally classified both the company and its chairman under this category in January 2025.

The decision was subsequently challenged by the borrower before the Bangladesh Bank. Following a hearing involving both parties, the central bank upheld Eastern Bank's classification on 17 July 2025, rendering the designation final and binding. The bank communicated this outcome to SS Steel shortly thereafter.

Parallel to regulatory action, Eastern Bank pursued legal recourse by filing a case with the Artha Rin Adalat in November 2024, seeking recovery of over Tk103 crore. During proceedings, the bank requested attachment of a residential property owned by the chairman in Banani, citing risks of asset dissipation.

The court, after due process including public notice, granted the attachment order in March 2025.

Subsequently, in May 2025, the court issued a decree in favour of Eastern Bank for the full claimed amount, incorporating the attached property as part of the recovery process. When the borrower failed to settle the dues within the stipulated timeframe, the bank initiated execution proceedings, with the outstanding amount rising to over Tk112 crore.

Auction notices for the attached property were published in November 2025. However, in a desperate attempt to stall this process, Said Rezaraj Ahmed, a director of the company, filed a writ petition before the High Court Division.

On 30 November 2025, the High Court issued a Rule Nisi and stayed the auction for three months, but this stay was conditional. The court directed the petitioner to pay the total outstanding dues in four equal instalments over 12 months. To date, SS Steel has failed to pay a single taka of these instalments, thereby violating the conditions of the High Court's stay order.

Eastern Bank, represented by its legal counsel Omar Sadat, senior advocate, has already moved the court to discharge the rule and vacate the stay order due to this non-compliance, which is presently pending for hearing.

It is therefore the bank's firm position that the Banani property remains under lawful, court-ordered attachment in favour of Eastern Bank. Any claim by SS Steel to the contrary is a misrepresentation of the legal reality.

Furthermore, any attempt to sell, transfer, or mutate this property is not only illegal but also constitutes direct contempt of the court's existing orders. The bank remains committed to recovering these public funds through every available legal channel.

Reaffirming its stance, Eastern Bank stated that all actions taken have been in strict adherence to regulatory frameworks and judicial directives, and reiterated its commitment to recovering public funds through legal means while ensuring accountability in the financial system.