Tk400cr default: Arrest warrants issued against Ali Paper Mills owner and two others

Dhaka's 5 No Money Loan Court has issued arrest warrants against three individuals, including Md Shahidul Islam, owner of M/s Ali Paper Mills Limited, over a Tk400 crore defaulted loan case with Janata Bank. The order was handed down today (6 October) by Judge Mujahidur Rahman.

The other two accused are the company's directors, Md Shahinul Islam and Md Tuhinul Islam. Court assistant, Md Imrul, confirmed the development, stating that the warrants were issued after the defendants failed to repay the bank's loan.

Court documents show that the case originates from a decree issued on 15 September 2019, which ordered the defendants to repay a little over Tk142 crore 84 lakh, along with 12% interest.

Although the decree required full payment within 60 days, the defendants did not comply, prompting the filing of the first case.

Subsequently, as the mortgaged property could not be sold at auction, the decree-holder exercised rights under Section 33(5) of the Money Loan Court Act 2003, including possession and sale of the mortgaged property, through a certificate that effectively settled the first execution case.

However, even after receiving the certificate, the bank could not recover any of the decreed amount through the sale or possession of the property.

Consequently, a second execution case was filed to recover the revised outstanding amount of Tk273 crore 59 lakh 71 thousand. Notices were served to the accused, but they failed to appear in court. Later on, the court issued arrest warrants against the accused.