A year on, S Alam Group yet to pay Tk434 crore in import duties on raw cane sugar

Though a year has passed, the controversial S Alam Group has yet to clear Tk434 crore in customs duties on raw cane sugar imports, despite four lawsuits filed by the Customs Bond Commissionerate to recover the outstanding amount, according to customs case documents.   

Instead, the company has appealed one of the cases involving Tk246 crore to the Customs, Excise and VAT Appellate Tribunal, raising concerns about whether the customs authorities will be able to recover the amount anytime soon.

So far, S Alam Group has paid Tk279 crore of the total Tk713 crore dues. The dues have been accumulating under its subsidiary, S Alam Refined Sugar Industries, since March 2024.

According to case documents, S Alam Refined Sugar Industries imported 55,800 tonnes of raw sugar in August 2023 through 11 consignments, valued at approximately Tk327 crore. The import duty for these shipments was Tk187 crore, which was due within six months under the Home Consumption Bond system.

However, the company failed to make the payment within the deadline.

Consequently, as the bond tenure expired, the Chattogram Customs Bond Commissionerate filed a lawsuit against the company on 5 March last year under the Customs Act.

Till now, the customs authorities have filed a total of four cases against S Alam Refined Sugar Industries for failing to pay import duties on raw cane sugar within the prescribed time.

In another case, on 17 October 2024, the Customs Bond Commissionerate through a judgement ordered the payment of Tk264 crore. However, S Alam appealed the decision, delaying the recovery process, according to Chattogram Customs.

Another case, filed on 27 October 2024, demanded payment of Tk204 crore, of which Tk92 crore has been cleared. The most recent case, on 18 November 2024, involves outstanding dues of Tk76 crore.

Customs officials said in the case where the company imported 55,800 tonnes of raw sugar, S Alam had cleared Tk187 crore in duties later but incurred an additional Tk1.16 crore in interest due to the delay.

The Customs Bond Commissionerate has issued a show-cause notice regarding the unpaid interest.

SM Kabirul Islam, joint commissioner of Chattogram Customs Bond Commissionerate, told The Business Standard, "S Alam Group officials have informed us that their bank accounts are currently frozen, which is preventing them from making timely payments. As a result, their raw sugar imports have also decreased."

When contacted, S Alam Group's Manager (VAT & customs) Didarul Alam declined to comment, saying, "I am busy now. I will speak later."

He, however, did not respond to further attempts for a statement.

Last year, amid the issues of unpaid duties, S Alam Group announced the closure of eight factories in the sugar, steel, and bag sectors from 25 December 2024, citing unavoidable reasons.

One of those factories was S Alam Refined Sugar Industries, located in the Moijjartek area under Karnaphuli Police Station in Chattogram.

However, S Alam Group later claimed that the factories were reopened.

Mohammad Borhan Uddin, head of Human Resources and Administration at S Alam Group, told TBS, "I am not aware of the unpaid import duties. However, the sugar refinery is operational with around 500 workers."

Decline in sugar imports

According to the National Board of Revenue (NBR) data, S Alam Group imported 360,052 tonnes of raw sugar through the Chattogram Customs Bond Commissionerate in 2023, valued at Tk1850 crore, with a payable duty of Tk942 crore.

However, in 2024, the group's sugar refinery imported only 144,153 tonnes, with an assessed value of Tk902.31 crore and import duties amounting to Tk479.31 crore.

Between January and 18 February 2025, S Alam Group imported just 2,900 tonnes of raw sugar, valued at Tk17 crore, with duties amounting to Tk9.42 crore.

Financial troubles

Several senior S Alam Group officials, speaking anonymously, stated that difficulties in obtaining financial support from banks had hindered their ability to import raw materials.

A previous report by TBS on 14 November 2024 also stated that banks were no longer willing to do business with S Alam, leading to the closure of its oil and sugar factories.

Such a situation came about as S Alam Group's Chairman Saiful Alam Masud, being a key figure in the business sector, is believed to have close ties with former Prime Minister Sheikh Hasina.

In 2017, the group took control of Islami Bank and later expanded its influence over multiple banks and insurance firms, allegedly withdrawing large sums under various pretexts.

Several company officials, including Saiful and his brothers, are believed to have gone into hiding or left the country after the fall of the Awami League government through the July-August mass uprising, deepening the group's financial troubles.

Without the backing from banks, the group's ability to import raw materials has been significantly affected, with raw sugar imports dropping by nearly 60% in 2024 compared to the previous year.