Islami Bank puts S Alam's steel mill, power plant, edible oil factory on auction to recover over Tk2,180cr dues

Islami Bank Bangladesh has announced the auction of major assets owned by S Alam Group, including a steel mill, a power plant, and an edible oil factory, along with 1,149 decimal (approximately 38 bigha) of land. 

The auction comes in an effort to recover a loan amounting to Tk2,180 crore owed by the conglomerate to the bank's Khatunganj Corporate Branch in Chattogram, according to media reports.

The bank published an auction notice yesterday in national and local newspapers. According to the notice, the properties listed include S Alam Cold Rolled Steel Ltd, S Alam Power Generation, and S Alam Vegetable Oil, all subsidiaries of the S Alam Group.

As of 20 April 2025, the total dues, including profit (as termed by the Islamic banks in place of "interest"), have reached Tk2,179.95 crore. To recover these dues, as well as cover damage and other related costs, Islami Bank has invoked Section 12(3) of the Money Loan Court Act, 2003 to invite bids from interested buyers to purchase the mortgaged properties through auction.

Earlier, on 20 April, Islami Bank Bangladesh announced the auction of nearly 11 acres of land, including factory buildings and warehouses belonging to S Alam Group, in a bid to recover outstanding dues amounting to nearly Tk9,948.42 crore.

The bank's Khatunganj Corporate Branch issued a public notice in a local Chattogram newspaper, inviting bids from interested buyers for the mortgaged assets of S Alam Refined Sugar Industries Limited.

The loan was sanctioned in favour of Unitex Composite Mills, represented by its Managing Director Belal Ahmed, who is also the son-in-law of S Alam Chairman, Mohammad Saiful Alam. 

The 13.23-acre mortgaged properties, pledged by the company's Chairman Mohammad Hanif Chowdhury, are located in Sitakunda upazila within the Jungle Banshbaria Mouza and feature a combination of flat and hilly landscapes.

On 21 April, the bank put on auction factories and other structures of Unitex Composite Mills Ltd – a company linked to the controversial S Alam Group – to recover unpaid loans of approximately Tk490.05 crore, including interest and charges. 

Interested buyers were asked to submit their tenders by 2pm on 12 May, said a public notice issued by the bank's OR Nizam Road Branch in Chattogram on 17 April.

According to the notice, as of 24 March 2025, S Alam Refined Sugar Industries Limited, its Chairman Mohammad Abdullah Hasan, and Managing Director Mohammad Saiful Alam owe the bank a total of Tk9,948.42 crore, including interest and other charges on defaulted investments.