Janata Bank to auction Ron Sikder’s power plant over unpaid loan

Janata Bank has issued an auction notice to recover a debt of approximately Tk843 crore from PowerPac Mutiara Jamalpur Power Plant Limited, owned by Ron Haque Sikder.

The Sikder family, especially Ron Sikder and his associates, has been reported to have had strong connections with the Awami League government, ousted from power in August last year.

According to the notice, as of 30 June, PowerPac owes Janata Bank a total of Tk842.82 crore, including interest and associated costs. To recover the amount, the bank is invoking section 12(3) of the Money Loan Court Act, 2003, and inviting tenders from potential buyers interested in the auctioned property.

Interested bidders must submit sealed tenders on plain paper to the tender box at Janata Bank PLC's corporate branch at Janata Bhaban, 110 Motijheel, Dhaka, or the Engineering Department of the head office by 3pm on 29 January.

Following the submission deadline, the tenders will be opened in the presence of interested parties. Prospective bidders can arrange to inspect the listed property, including land, infrastructure, and inventory, through the bank prior to the auction.

A director of the Janata Bank board, on condition of anonymity, told TBS, "We will intensify legal actions to recover loans from top defaulters, starting with the big groups. We plan to auction the collaterals tied to these loans. Additionally, we will coordinate with the government to seize any undisclosed assets of the defaulters, if found."

"A forensic audit is necessary to determine the true financial status of Janata Bank. Currently, about 75% of the loans are in default, and it is challenging to obtain a full financial picture without such an audit," he added.

Earlier, Janata Bank took steps to auction the mortgaged properties of two companies under S Alam Group — S Alam Refined Sugar Industry and S Alam Cold Rolled Steels — due to over Tk3600 crore in defaulted loans. However, S Alam Group has announced its intention to pursue legal action against the auction of these properties.

The Sikder family has long faced allegations of significant corruption. National Bank, a private commercial bank controlled by the family for over a decade, is now on the brink of collapse. In 2009, the bank's defaulted loans were under Tk400 crore, but the figure surged to Tk12,000 crore.

Among the five weak banks, the central bank decided to merge with strong ones last year, National Bank had the highest amount of defaulted loans. As of the latest data, 29% of the loans disbursed by the bank are in default, and the bank has incurred a net loss of Tk4,782 crore over the last two years.